Economic Daily: Positive signals from price bottoming out and rebounding, CPI turning from decline to increase year-on-year
The data released by the National Bureau of Statistics on the 9th shows that the CPI has bottomed out and rebounded, sending a positive signal.
Screenshot of the official website of the National Bureau of Statistics.
According to statistics, the national consumer price index increased by 0.1% year-on-year in August, transitioning from a decrease to an increase; The month on month increase was 0.3%, an increase of 0.1 percentage points from the previous month. The ex factory price index of industrial producers decreased by 3.0% year-on-year, narrowing by 1.4 percentage points compared to the previous month; The month on month increase was 0.2%, marking the first time this year that it has turned positive.
Since the beginning of this year, the year-on-year increase in CPI has fluctuated and decreased. In July, it briefly fell into the negative range. However, as the consumer market continues to recover and the supply and demand relationship continues to improve, the CPI in August changed from a decrease of 0.3% in the previous month to an increase of 0.1%, returning to the positive range. The core CPI, excluding food and energy prices, increased by 0.8% year-on-year and remained stable. In August, due to factors such as improved demand for some industrial products and rising international crude oil prices, the year-on-year decline in PPI further narrowed, and the month on month trend shifted from a decrease to an increase.
The positive changes in the price field indicate that as policy effects continue to emerge, economic cycles continue to flow smoothly, and the "positive feedback" of expanding domestic demand gradually strengthens, the market supply and demand relationship is further moving towards balance. Looking ahead to the later stage, as the economy continues to improve, the Mid Autumn Festival and National Day holiday will drive steady recovery in consumer demand, and it is expected that CPI will continue to rebound. The supply and demand relationship in the industrial sector is expected to gradually improve, and coupled with the gradual decline in the previous year's base, the year-on-year decline in PPI is expected to further narrow.
![Economic Daily: Positive signals from price bottoming out and rebounding, CPI turning from decline to increase year-on-year](https://a5qu.com/upload/images/840d33bc80a102ca2292a83e67d7db53.png)
Currently, the world economy is still facing downward pressure, and domestic economic recovery is facing insufficient demand. The foundation for economic recovery still needs to be strengthened, and although domestic prices have improved, the overall situation is still relatively sluggish. In this regard, we need to continue to increase macroeconomic policy regulation, focus on promoting high-quality development, continuously improve economic performance, enhance endogenous momentum, improve social expectations, and resolve risks and hidden dangers, in order to achieve effective improvement in quality and reasonable growth in quantity of the economy.