The National Bureau of Statistics of the mainland today (9) released March price statistics, the consumer price index (CPI) increased 0.4% annually, ending two consecutive months of negative growth. Ex-factory prices of industrial products (PPI) rose 4.4%, an increase of 2.7 percentage points faster than in February, hitting a new high of nearly three years since August 2018.
Experts pointed out that the CPI turned from negative to positive, releasing signals of economic recovery, but the PPI refined oil prices rose, fearing further inflationary push.
In response to the most concerned about the price of pigs for people’s consumption, pork prices fell by 18.4% in March, expanding by 3.5 percentage points; chicken and duck prices continued to fall by 8.6% and 2.6%, respectively.
Interface News reported that pork prices have continued to fall so far this year. According to the Ministry of Agriculture and Rural Affairs, the average price of pork in the agricultural wholesale market was RMB 35.37 per kilogram by the end of March, a significant drop of more than 30% from a year ago.
It is worth noting that African swine fever is threatening to resurface. Analysts warn that pork prices are likely to rise again after May.
According to a release from the Ministry of Agriculture and Rural Affairs, a report was received from the China Animal Disease Prevention and Control Center that an outbreak of African swine fever has occurred on farms in Xinjiang, which is the first official announcement of an outbreak of non-fever in April, just one week after the last announcement and the ninth outbreak since this year.
In addition, oil prices continue to rise sharply, the mainland State Council Financial Stability Development Committee held a meeting on the eve of the release of CPI, stressing the need to maintain basic price stability, especially concerned about the trend of commodity prices. The National Bureau of Statistics of the mainland pointed out that there were two increases in the price of refined oil products on March 3 and 17, which brought some lift to non-food prices. Driven by the price increases of gasoline and diesel, the prices of industrial consumer goods rose 1.0%, the first annual increase in nearly a year.
Caixin Securities chief economist Wu Chaoming said that because of the slow recovery of consumer demand, CPI is not strong momentum to rise sharply, CPI is expected to grow about 1.5% for the year. Compared with the CPI, analysts believe that the PPI may subsequently accelerate upward.
Wu Chaoming pointed out that international commodity prices continue to rise, and the year-on-year increase in PPI in March expanded significantly. In the coming period, the PPI may continue to rise, the rate of increase “break 5” chances are greatly increased.
Mainland consumer price index (CPI) in March increased by 0.4%, from negative to positive.
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