China’s mild inflation indicates a stable economic situation

Beijing. April 13. Silkroadnews - In March, China registered a mild increase in prices for consumer goods and producer goods, which indicates a balanced demand and stable economic situation, the Chinese information portal SINA reports.
The consumer price index (CPI), the main indicator of inflation, in March grew by 2.1% compared to 2.9% in February, the National Bureau of Statistics (NBS) showed.
“Stable prices suggested a healthy economy and also provided a good macro-environment for the economy to grow,” the NBS said.
On a monthly basis, the consumer price index fell 1.1%, which is explained by the holidays factor and due increase in demand in February.
Prices for food products decreased by 4.2% compared to February, which is 0.86 percentage points higher than the monthly decline in the consumer price index.
As the number of travels has decreased after the Spring Festival, prices for air tickets, travel agency services and long distance bus tickets have dropped 18.7%, 11.7% and 4.7%, respectively, compared to February.
Prices for non-food products for the first three months maintained a steady growth of 2.2%, which is a relatively fast rate indicating an increase in consumption.
China expects that the consumer price index will increase by about 3% in 2018.
The producer price index (PPI) grew by 3.1% in March compared to the growth of 3.7% in February.
In the first quarter, the PPI index rose by 3.7% year-on-year, down from 5.8% in the fourth quarter of 2017.
In terms of demand, stable economic growth has helped both investment and consumption to maintain growth momentum.