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Shree Metal Prices: China’s Factory Inflation Hit a 20-Month Low in September: CPI.

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Inflation in China climbed in September as a number of liquidity initiatives by the People’s Bank & increased spending over the mid-Autumn festival supported retail prices. However, factory-gate inflation remained stubbornly low at about 20 months.

According to statistics from the National Bureau of Statistics, the consumer price index increased 2.8% on a yearly basis in September. Which was in line with predictions. The amount was higher than the 2.5% measurement from August.

Inflation in the CPI increased 0.3% on a monthly from August, up from 0.1% the month before.
However, contrary to predictions for growth of 1%, China’s producer price index.

That gauges factory-gate prices, increased at an annualised rate of 0.9% in September.

The reading reached its worst point since February 2021 and was far below August’s 2.3%.

China’s Economy- Inflation, Interest Rates,CPI & Lockdown Effects

The reading demonstrates that the effects of many COVID-related lockdowns this year are still having a negative impact on the Chinese economy. Due to ongoing factory closures, industrial production in particular has suffering the most.

The reading on Friday also comes after recent statistics revealed that in September, the manufacturing sector activity in China remained just above contractionary levels. Additionally, COVID limits restrained spending during in the mid-Autumn festival, which typically generates astronomical retail sales.

The inflation figures come ahead of a Chinese Communist Party’s 20th National Congress on Sunday. Which is anticipated to offer hints about Chinese economic policies for the following five years.

In order to boost the economy’s sluggish development, Beijing has committed to enhance stimulus measures. The nation must strike a balance between taking helpful policies and protecting the yuan, though.

On Friday, the Chinese yuan slipped 0.2%. The offshore yuan just set a record low due to increased headwinds from rising interest rates around the world. While it recently reached its worst level since the 2008 financial crisis.

The largest barrier towards the Chinese economy this year is Beijing’s steadfast adherence to its COVID Zero policy.

This week, as the financial centre of Shanghai reported an increase in COVID instances, worries of additional lockdown measures started creeping into the markets.

SHREE METAL PRICES

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