中文
China's producer price index (PPI), gauging the cost of goods at the factory gate, fell 2.5% year on year in January, compared with a 2.7% decrease a month ago, official data showed on February 8.
On a month-on-month basis, the figure dropped 0.2%, compared with a 0.3% fall in December.
"Affected by price fluctuations in global commodities and the seasonal lull for some domestic industries, the PPI index fell both year-on-year and month-on-month in January, but the declines have eased compared with December," said Dong Lijuan, senior statistician of the National Bureau of Statistics.
However, the PPI has fallen for 16 straight months year on year, suggesting the manufacturing activity has remained under pressure with a slower-than-expected recovery post the pandemic, despite some green shoots emerging in the sector recently.
Among all major measured industries, prices slumped 16.0% year on year in the coal mining and washing industry, mainly due to the seasonal effect that many industrial activities suspended before the Chinese New Year holiday
For the consumer price index (CPI), which measures the level of inflation, fell 0.8% year on year in January, against a 0.3% fall in December. The index, however, rose 0.3% month on month for the second straight month.
The decline was mainly attributed to the staggered occurrence of the Chinese New Year holiday in January last year and in February this year, Dong said.
After deducting food and energy prices, the core CPI rose 0.3% month on month – on par with the average level for the month in the past decade – and 0.4% year on year, showing a further milder rise.
However, many observers warned the deflationary risk is still within sight as consumer sentiment remained largely dismal on persistent concerns over a sluggish economic recovery.
Unlike many parts of the world that have experienced inflation in the aftermath of the coronavirus pandemic, China has seen growing risks of deflation. Its weaker-than-expected economic recovery, lower food and energy prices, as well as a prolonged property downturn, have contributed to declining prices in China, according to the International Monetary Fund.
(Writing by Alex Guo Editing by Riley Liang)
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