zyxxzn.com

Price Fluctuations Rise in Consumer Sector

Advertisements

As the year unfolds, various regions and departments have earnestly implemented the decision-making directives from China’s central governmentThis has resulted in a proactive approach to macroeconomic regulation, ensuring a generally stable economic operation with slight growth, despite fluctuations in consumer pricesIn the production sector, however, prices remain at lower levels, presenting a mixed economic landscape.

One of the most notable aspects observed in the first three quarters is the rebound of prices in the consumer sectorThe Consumer Price Index (CPI) recorded a modest increase of 0.3% compared to the same period last year, reflecting a widening by 0.2 percentage points from the first half of the yearAnalyzing the monthly trends reveals that the CPI displayed an upward trajectory in the latter part of the periodDuring January, influenced by a high comparison base from the previous year, the CPI saw a decrease of 0.8%. However, February experienced a 0.7% increase due to the Lunar New Year holiday effects

Advertisements

From March to June, the overall consumer market operated steadily, with CPI fluctuations between 0.1% and 0.3%. However, during July and August, the impact of increased summer travel and enduring high temperatures raised the CPI changes to 0.5% and 0.6%, respectivelyIn September, as the comparison base again grew, there was a slight slowdown with a 0.4% increase in CPI.

Specifically concerning food prices, the decline in their prices has narrowedIn the first three quarters, food prices have decreased by 1.2%, showcasing a reduction of 1.5 percentage points compared to the first half of the yearThis decline continues to considerably influence the CPI, with an estimate of about 0.21 percentage points contributing to this downtrend in the CPI.

On the contrary, non-food prices have experienced a slight increaseThey rose by 0.6% year-on-year during the same period, adding approximately 0.48 percentage points to the growth in CPI

Advertisements

Energy prices reflected a pattern of rising and then falling, with an average overall increase of 1.1%. Meanwhile, prices of industrial consumer goods, excluding energy, remained relatively stable, averaging out unchanged from the previous year.

In the production sector, the prices have continued to hover low throughout the first three quarters, with the Producer Price Index (PPI) dropping 2% year-on-year, a decrease that narrows by 0.1 percentage points from the first half of the yearObserving the monthly data, a decline was noted from January to April mainly driven by seasonal low demand within domestic industrial production and periodic declines in demand across certain industries with PPI seeing consistent drops each month, ranging between 2.5% to 2.8%. Moving into May to July, with production steadily recuperating, the monthly year-on-year declines in PPI eased from 1.4% to 0.8%. However, from August onwards, an international decline in commodity prices was noted in tandem with weak demand from certain domestic industries, leading to a renewed decline in PPI by 2.8% in September.

Market supply and demand factors have played pivotal roles in propelling price reductions across certain industries

Advertisements

The coal production across the country has remained stable, with imports of coal sustaining an upward trend leading to ample market suppliesLimited demand for coal not used for electricity has resulted in a price decrease of 8.7% in coal mining and washing industries during this period.

During the first half of the year, it seemed as if international commodity markets had received a shot in the arm, with prices witnessing strong upward trendsIncreased geopolitical tensions, particularly in the Middle East, where oil production and transportation faced numerous uncertainties, prompted the Organization of the Petroleum Exporting Countries (OPEC) to implement production cut strategies in a bid to stabilize oil pricesThe confluence of these factors propelled international crude oil prices dramatically, with Brent crude at one point soaring to around [X] dollars per barrel

This surge directly influenced the pricing within the oil and gas extraction industries, showcasing substantial price increases during the first half of the yearHowever, entering the third quarter, a stabilization in U.Sshale oil production combined with a slowdown in the global economic recovery tempered oil demand growth, altering the market's supply-demand dynamicsThough year-on-year prices in oil and gas extraction continued to rise by 3.5% across the first three quarters, this increase had moderated by 3.2 percentage points from the earlier part of the yearIn the refined petroleum product manufacturing sector, constrained by shrinking oil price increases and ever-growing domestic refining capacities leading to intensifying market competition, the price rise was notably limited, only increasing by 0.2% throughout the first three quarters, representing a 1 percentage point decline from the earlier half.

Conversely, certain sectors within equipment manufacturing and consumer goods display a markedly contrasting scenario

alefox

The swift development of high-technology industries along with incrementally implemented large-scale equipment renewal policies have catalyzed growth within segments of the equipment manufacturing industryTake for example the realm of aerospace and equipment manufacturing – China's aerospace sector is witnessing a vigorous expansion with the commercial operation of domestically-produced aircraft C919 proceeding smoothly, alongside frequent satellite launch missions generating a steady influx of orders, thereby driving an increase of 4.2% in prices within this sectorSimilarly, the capacitor and associated equipment manufacturing industry, fueled by rapid growth in emerging sectors like electric vehicles and 5G communications, experiences a marked surge in market demand resulting in a price rise of 2.8%. Concurrent to these movements are government policies directed at spurring consumption and expanding internal demand, effectively rebuilding consumer confidence gradually, with the market for consumables showing progressive improvements

Rencent Posts



Categories