Consumer prices went down to China in April for the third consecutive month, according to official statistics published today, while Beijing tries to relaunch the economy affected by the stagnation of consumption. The consumer price index, a key measure of inflation, dropped by 0.1% on an annual basis in Aprilaccording to data from the National Statistics Office (NBS). The index had already come down in February and March. The economists interviewed by Bloomberg had foreseen this measure. In March the index had come down to the same pace.
In recent years, the second world economy has had to face deflationary pressures, due to the crisis in the real estate sector and the high unemployment. The situation was further aggravated by the commercial battle with the United States of Donald Trump, who threatens the exports of the country.
Today a crucial meeting between China and the United States will be held in Switzerland in an attempt to loosen tensions. US duties affect Chinese goods in the extent of 145%. The statistical of the BNS Dong Lijuan has said that “international factors” are having “a certain impact on the prices in some sectors”.
The National Statistics Office also announced that the production index for production fell by 2.7% on an annual basis in April, with an acceleration compared to the 2.5% drop recorded in March. This index measures the cost of the goods that come out of the factories and provides an indication of the health of the economy. The drop last month was in line with expectations. Production prices in red, as observed in recent months, are synonymous with reduction of margins for companies.
Chinese exports increased by 8.1% in April, a given four times higher than the forecasts, which experts explain by moving commercial flows to Southeast Asia to compensate for the impact of US duties. Exports to the United States decreased by 17.6% in April compared to March, while those towards Thailand, Indonesia and Vietnam increased by more than 10%. This week the Chinese authorities have announced the reduction of the reference rate of reference and the amount of the reserves requested from the banks, in order to facilitate the translation.