- Israel says conducting review after UN peacekeepers wounded in Lebanon
- 'Party atmosphere': Skygazers treated to another aurora show
- Djokovic 'overwhelmed' after 'greatest rival' Nadal's retirement
- Zelensky in Berlin says hopes war with Russia will end next year
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
- Britain face 'ultimate challenge' in America's Cup duel with New Zealand
- Lebanon calls for 'immediate' ceasefire in Israel-Hezbollah war
- Nihon Hidankyo: Japan's A-bomb survivors awarded Nobel
- Thunberg leads pro-Palestinian, climate protest in Milan
- Boat captain rescued clinging to cooler in Gulf of Mexico after storm Milton
- Tears, warnings after Japan atomic survivors group win Nobel
- 'Unspeakable horror': the attacks on Hiroshima and Nagasaki
- Stock markets diverge before China weekend briefing
- Christian villagers 'trapped' in south Lebanon crossfire
- Sabalenka sets up Gauff showdown in Wuhan semis
- EU questions shopping app Temu over illegal products risk
- Kim Sei-young holds lead with late birdies at LPGA Shanghai
- Toulouse welcome Dupont 'boost' as Olympic star returns to Top 14
- Japanese atomic bomb survivor group Nihon Hidankyo wins Nobel Peace Prize
- Deadly Israeli strike on Beirut likely targeted Hezbollah security chief
- Bangladesh Islamist chief backs crimes against humanity trial for ex-PM
- Everest climber's remains believed found after 100 years
- 20 Pakistan coal miners shot dead in attack
- Clashes on South China Sea, Ukraine dominate Asia summit
- Han Kang's books sell out in South Korea after Nobel win
- Zelensky meets Pope, Scholz as whirlwind Europe tour ends
- Hello Hallyu: why is South Korean culture sweeping the globe?
- UK economy rebounds in August in boost to new govt
- Voice of Japan's beloved robot cat 'Doraemon' dies
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- 20 Pakistan coal miners shot dead in attack: police
- Blinken condemns China's 'increasingly dangerous' sea moves
- Toyota returns to Formula One as Haas partner
- EU chief says China must 'adapt its behaviour' to solve trade row
- Musk unveils robotaxi, pledges it 'before 2027'
- Lynx rally, stun Liberty in overtime in WNBA Finals opener
- Pogacar hunting 'perfect' season finale with Coppi's Il Lombardia record
- 'Soul of old Baghdad': city centre sees timid revival
- Kittle at the double as Niners hold off Seahawks
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Yankees advance in MLB playoffs as Guardians stay alive
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- Kamada says Japan can close in on World Cup place against Australia
- On US coast, wind power foes embrace 'Save the Whales' argument
RBGPF | -1.03% | 59.49 | $ | |
RYCEF | 0.58% | 6.92 | $ | |
CMSC | -0.14% | 24.555 | $ | |
NGG | 0.88% | 66.265 | $ | |
BTI | -0.04% | 35.095 | $ | |
RIO | 0.55% | 67.21 | $ | |
GSK | -1.03% | 38.811 | $ | |
AZN | 0.25% | 77.06 | $ | |
SCS | 2.48% | 12.92 | $ | |
CMSD | -0.28% | 24.7 | $ | |
RELX | 1.51% | 47.07 | $ | |
VOD | -0.78% | 9.665 | $ | |
BCC | 1.95% | 141.71 | $ | |
JRI | 0.08% | 13.23 | $ | |
BCE | 0.27% | 32.95 | $ | |
BP | -0.48% | 32.185 | $ |
China consumer prices rise in February for first time in six months
Chinese consumer prices rose in February for the first time since August, data showed Saturday, bucking a months-long stretch of deflation that compounded the country's myriad economic woes.
The world's second-largest economy posted some of its lowest growth in decades last year and is battling a prolonged property sector crisis and soaring youth unemployment.
But in a rare bright spot, official statistics Saturday showed the consumer price index rose 0.7 percent last month, according to Beijing's National Bureau of Statistics (NBS) -- the first increase since August.
The figure was higher than a 0.3 percent rise analysts surveyed by Bloomberg had expected and a sharp increase on the 0.8 fall seen in January, their sharpest drop in more than 14 years.
The positive data comes as senior officials meet in Beijing for the annual "Two Sessions" of China's parliament and its top political consultative body, in gatherings that have been dominated by the economy and national security.
On Tuesday, Premier Li Qiang told that gathering the country would seek five percent growth in 2024 -- an ambitious goal that he acknowledged would be "not be easy" given the headwinds facing the economy.
High among those issues has been deflation, which China entered last July for the first time since 2021.
Apart from a brief rebound in August, prices had not risen until last month.
Consumer prices traditionally see a boost during the Chinese New Year period, also known as Spring Festival, which fell in February this year.
"It was primarily food and service prices that rose more," NBS statistician Dong Lijuan said in a statement.
"During the Spring Festival period, consumer demand for food products grew, in addition to rainy and snowy weather in some regions affecting supply," Dong said.
- Demand remains weak -
China's sinking prices are in stark contrast with the rest of the world, where inflation remains a persistent bugbear, forcing central banks to ramp up interest rates.
While deflation suggests goods were cheaper, it poses a threat to the broader economy as consumers tend to postpone purchases, hoping for further reductions.
A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stocks -- dampening profitability even as costs remain the same.
Given the holiday factor, one analyst cautioned against seeing Saturday's figures as suggesting China was no longer struggling with deflation.
"I think it is too early to conclude that deflation in China is over," Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said.
"Domestic demand is still quite weak. Property sales of new apartments have not stabilised yet," he explained.
And producer prices continued to fall in February, dropping by 2.7 percent, the NBS said.
"Affected by the Spring Festival holiday and other factors, industrial production was in its traditional off season," Dong said.
Investors have called for much greater action from Beijing to shore up the flagging economy.
But despite calls for broader stimulus measures Beijing indicated this week it was unlikely to resort to big-ticket bailouts, setting a fiscal deficit-to-GDP target of three percent, similar to last year.
A.Malone--AMWN