China’s consumer inflation increased in April as rising global crude oil prices, driven by the ongoing Iran war, pushed up domestic fuel costs and contributed to higher spending during the holiday season, according to official data released on Monday.
Figures from the National Bureau of Statistics (NBS) showed that the country’s Consumer Price Index (CPI) rose by 1.2 per cent year-on-year last month. Officials attributed the increase mainly to volatility in international energy markets and stronger travel-related consumption ahead of the May holiday period.
NBS chief statistician Dong Lijuan said higher global oil prices significantly affected domestic fuel markets, with gas prices rising 19.3 per cent compared to the same period last year. Increased travel and consumer activity before the five-day holiday also contributed to the rise in prices.
China’s Producer Price Index (PPI), which measures wholesale inflation, also continued its recovery, climbing 2.8 per cent year-on-year in April after increasing 0.5 per cent in March. The latest figure exceeded market expectations and marked the fastest rise since mid-2022.
The improvement comes after factory gate prices remained in deflationary territory for more than a year due to weak industrial demand and overcapacity in several sectors.
Despite the rise in inflation indicators, analysts warned that broader deflationary pressures still remain a challenge for the Chinese economy. Research firm Capital Economics said the recent increase was largely driven by temporary oil-related shocks rather than strong domestic demand.
Economists noted that sluggish consumer spending, industrial overcapacity, and weak confidence continue to limit the prospects for sustained price recovery in the world’s second-largest economy.
.jpg "LPG cylinder price reduced to Tk1,885 in Bangladesh")
