(Xinhua/Sun Zhongzhe)
China’s inflation remained stable last year, with slight growth in consumer prices and a slowdown in the decline in producer prices, as domestic demand continued to warm amid a recovery sustainable economy.
China’s consumer price index (CPI), one of the main indicators of inflation, rose 0.2% year-on-year in 2024, according to official data released on Thursday.
In December alone, the CPI increased by 0.1% compared to the previous year, according to the State Bureau of Statistics (NBS). The core CPI, which excludes food and energy prices, rose 0.4% year-on-year in December, compared with 0.3% in November.
On a monthly basis, the CPI remained stable in December, after a decline of 0.6% in November.
According to data released by the NBS on Thursday, the producer price index (PPI), which measures the costs of goods at the factory gate, fell 2.3% year-on-year in December, compared with a decline of 2.5% in November. Compared to November, the PPI fell by 0.1%.
Over the whole of 2024, the PPI decreased by 2.2%, compared to a decrease of 3% in 2023.
Although last year’s consumer and producer prices were largely at low levels, analysts say they remained stable and continued to improve, indicating warming in market sentiment .
China has implemented a major program in 2024 to promote large-scale equipment renewal and the sale of new consumer goods against the trade-in of old goods, as part of efforts to boost domestic demand and consolidate the economy. This program encourages factories to replace old machines with more advanced equipment, and individuals will be able to benefit from subsidies for the purchase of products, such as cars and household appliances.
These policies have produced notable results. According to official data, the trade-in program boosted automobile sales by 920 billion yuan (about $128 billion) in 2024, and household appliance sales by 240 billion yuan.
However, insufficient domestic demand remains a salient problem for China’s economy, and experts are calling for even more efforts to inject vitality into the market.
At the Central Conference on Economic Work held in December 2024, Chinese policymakers, while defining economic work for 2025, stressed the need to vigorously stimulate consumption, improve investment efficiency, and increase domestic demand on all fronts.
China’s consumer and producer prices will continue to improve in 2025, analysts say, as supportive policies and continued economic recovery are expected to help boost market confidence.
