Officials in China have noted that inflation saw a dip in 2024, thanks to the drop in food and energy prices. However, they anticipate a pick-up in price growth this year, fueled by government initiatives designed to boost consumer spending and confidence.
According to Fu Linghui, the spokesperson for the National Bureau of Statistics, although food and energy prices have been volatile, the core consumer price index—which strips out these volatile items—has stayed pretty steady. He mentioned that the government’s stimulus measures are indeed encouraging stronger consumer activity.
In a significant development at the Communist Party’s Central Economic Work Conference in December, there was a clear emphasis on the necessity of balancing economic growth with stable employment and moderate recovery in prices, a stance that Fu highlighted as being outlined for the first time.
China has rolled out various strategies, like monetary easing and providing fiscal aid to local governments, all aimed at nurturing growth. Still, some analysts are doubtful about these measures having a substantial effect on boosting household confidence, which has been dented by troubles in the property market.
Meanwhile, consumer prices only edged up by 0.1% in December when compared to the previous year, a slight drop from November’s 0.2%. For a year and a half now, the rate of consumer price growth has been flirting with deflationary levels or remains quite low.
