China’s economy is unlikely to face deflation risk, despite CPI drop in October: NBS spokesperson
Published: Nov 15, 2023 12:35 PM Updated: Nov 15, 2023 12:33 PM


China's economy is unlikely to face deflationary risks, and in the coming time, consumer prices operating within a low-price range will gradually ease, Liu Aihua, a spokesperson from the National Bureau of Statistics (NBS) said on Wednesday. 

Liu made the remarks responding to a media question over whether the 0.2 percent year-on-year drop of China’s consumer price index (CPI) in October which slipped 0.1 percent from September – a main gauge of inflation – signals rising deflationary pressure. 

Liu said that China’s economic performance continued to recover and improve. Demand for both goods and services are continuing to recover, while the broad money supply has maintained relatively rapid growth with a generally sufficient and reasonable levels of market liquidity. 

As for the current price levels, Liu said that the fluctuation in CPI has seasonal characteristics due to structural factors, while the core CPI has remained relatively stable, adding that the overall consumer price level will remain stable.

Liu said that the current structural character of moderating prices is evident, and the decline in food prices was the major cause for a widening drop in the price level. The fall in food prices was mainly caused by an over-supply of agricultural products -- including pork, fruits and vegetables -- in October, coupled with the consumer demand drop-off in the wake of the National Day Holidays along with other factors, which largely reflect normal seasonal movements.

And, core consumer prices have been largely stable. In the first 10 months of the year, consumer prices rose 0.4 percent year-on-year, of which the core CPI rose 0.7 percent year-on-year. The price growth rate was the same comparing with the first three quarters of the year, Liu said.

Global Times