Moderate Rebound in Consumer Prices and Narrowing Decline in Production Prices——Analysis and prospect of price situation from January to May 2024
Precisely understanding the macroeconomic landscape is crucial for implementing targeted macroeconomic policy adjustments,bolstering domestic demand,anchoring expectations,and advancing high-quality economic growth.Since 2024,China has seen a moderate uptick in the price level,with consumer prices remaining stable and those in the production sector declining slightly.Between January and May,the CPI rose by 0.1%year-on-year,while the PPI dropped by 2.1%year-on-year,falling short of the government's target of keeping the consumer price increase around 3%.In the second half of the year,the combination of improved macro demand,heightened inflation expectations,and anticipated interest rate cuts by the Federal Reserve is expected to further stabilize and boost prices.Consequently,it is recommended to enhance the synergy of macroeconomic policies,vigorously expand domestic demand,ensure price stability for essential commodities like pork and vegetables,advance price reforms in strategic sectors,and unleash a concerted push for high-quality economic growth.