Part 2/9:
We kick off today’s discussion with a crucial look at China’s economic performance, particularly in consumer prices. Recent data from the National Bureau of Statistics indicates that China experienced its fastest consumer price index (CPI) increase in five months this January, rising by 0.5% year-over-year. This uptick is attributed to the holiday-driven spending related to the Lunar New Year, which commenced earlier this year.
However, while this short-term boost in consumer demand seems promising, experts caution that underlying deflationary pressures present a more significant threat to the country's economy. Factory prices, as measured by the producer price index (PPI), have faced continuous declines for 28 months, cementing concerns about China's manufacturing and export sectors.