China's Deflation Pressures Alleviate, More Stimulations to be Taken to Stimulate Demand

China has recently seen a decrease in deflation pressures, and further steps are anticipated to be taken to reinforce demand.

Sep 9, 2023 - 15:20
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China's Deflation Pressures Alleviate, More Stimulations to be Taken to Stimulate Demand

China has recently seen a decrease in deflation pressures, and further steps are anticipated to be taken to reinforce demand.

According to official data, the producer price index in August declined 0.2 percent in comparison to the last year. That is softer than the 0.4 percent shrinkage in July, and reflects a lesser severity of the nation‘s deflation.

The consumer price index also demonstrated an annual increase of 0.4 percent, in line with the economists‘ prediction. And the food price variation — an integral part of the CPI calculation — increased 3.3 percent.

Analysts stated that deflationary pressures have been relieved due to the economic recuperation this year, which was caused by the government‘s fiscal measures like tax and fee cuts.

In addition, China‘s National Bureau of Statistics asserted that more amplifications in government-led investment and domestic consumption would be made to spruce up economic growth and demand.

The NBS Administration stated that it plans to provide more fiscal support and enhance strategic emerging industries so as to propagate consumption.

Though the bureau commented that China‘s macro-economy remained steady, challenges still exist due to the slow international economic environment, the pandemic‘s influence, and the complex business environments.