The consumer price index rose by just 0.1% in April from a year ago, the lowest rate of inflation since February 2021, according to the National Bureau of Statistics on Thursday. In March and February, it increased 0.7% and 1% respectively. The producer price index, which measures factory-gate prices, declined by 3.6%, marking the biggest contraction in three years. It’s the seventh straight month the figure has fallen.
According to data released Tuesday by the customs authority, imports plunged 7.9% in April, indicating weak domestic demand. Exports were strong, up 8.5% from a year, although that was slower than the 14.8% growth recorded in March. Instead of spending money, people are hoarding cash at a record rate. In the first quarter, deposits held by households nationwide grew by 9.9 trillion yuan , up 27% from a year ago, according to data from the central bank last month.
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