Posted on 12 Apr 2023
During March, China's Consumer Price Index (CPI) rose 0.7% on year but dipped 0.3% on month, while the country's Producer Price Index (PPI) dropped 2.5% on year, according to the latest data released by the country's National Bureau of Statistics on Tuesday morning. The PPI was unchanged on month, however.
The pace of the on-year increase in the CPI slowed last month, with the ample supply of goods and commodities in the consumer market being a major drag on prices, according to Dong Lijuan, a senior statistician with the NBS.
For example, Chinese food prices dropped 1.4% on month in March, with the prices of fresh vegetables and pork losing 7.2% and 4.2% respectively, the NBS data showed. On a yearly basis, food prices rose by 2.4% in March, the increment being slightly lower than the 2.6% rise in February.
"Availability of vegetables in the market improved as the weather grew warmer," Dong explained. "Meanwhile, the stocks of pork held by pig farmers were high but the demand waned last month."
On the other hand, Chinese consumer demand for travel recovered in March, according to Dong. NBS data showed that domestic prices of air tickets and hotel accommodation increased by 2.9% and 3.5% on month respectively, while compared with the same period last year, they jumped 37% and 6.1%.
China's PPI in March remained unchanged on month for the second straight month, according to the NBS data. It dropped 2.5% on year, however, mainly because the prices of oil, coal, steel, and other industrial products stood at high levels in March 2022, Dong noted.
Last month, China's steelmaking and fabrication industry saw ex-works prices rise 1.3% on month as steel demand recovered further, but prices dropped 11% on year, NBS data showed.
Meanwhile, the warming weather reduced coal consumption for residential heating, which undermined domestic coal prices, Dong commented. In March, prices in China's coal mining and processing sector slid 1.2% on month and by 3.2% on year.
The slide in global oil prices also impacted Chinese energy markets, with prices in the oil and natural gas exploration sector losing 0.9% on month and slumping 15.7% on year.
Over January-March, China's CPI gained 1.7% on year, while the PPI decreased 1.6% on year, according to NBS's latest statistics.
Source:Mysteel Global
