Fashion
China’s PPI decline narrows to 2.9% as CPI falls 0.4% in August
PPI marked the first narrowing since March, signalling a modest recovery in industrial demand amid government measures to steady growth. On a month-to-month basis, the PPI halted its decline, remaining unchanged after a 0.2 per cent fall in July. For the January–August period, producer prices were 2.9 per cent lower than a year earlier.
China’s producer price index fell 2.9 per cent YoY in August, easing from July’s 3.6 per cent drop, while remaining flat month-on-month.
Its consumer price index declined 0.4 per cent, though core CPI rose 0.9 per cent for the fourth straight month.
NBS cited proactive policies and gains in sectors like integrated circuits and shipbuilding, suggesting stabilisation in factory-gate costs.
Meanwhile, core CPI, excluding food and energy, climbed 0.9 per cent, continuing its four-month streak of gains.
NBS statistician Dong Lijuan attributed the fall in PPI to a high base in 2024 and a smaller-than-usual seasonal rise in food costs. The proactive macroeconomic policies and shifts in key industries underpinned the narrower PPI decline. Notable gains included a 1.1 per cent rise in integrated circuit packaging and testing, and a 0.9 per cent increase in shipbuilding equipment.
Rising demand for high-end consumer products also helped lift prices in selected sectors, said Chinese media outlets quoting Dong.
The data suggested that while consumer prices remain subdued, stabilisation in factory-gate costs could be an early sign of improving momentum in China’s industrial economy.
Fibre2Fashion News Desk (SG)