Multiple factors, including seasonal reasons, imports and market competition, led to a year-on-year decline in China's producer price index (PPI) in the first nine months of this year, said an expert.
China's PPI, which measures costs for goods at the factory gate, went down 2.8 percent year on year in September, the National Bureau of Statistics said Sunday.
In the period from January to September, China's producer prices for industrial products decreased by 2.0 percent over the same period of last year.
Regarding specific industries, there are rises and falls in the prices due to multiple factors. Among them, the rise in international oil prices and copper and aluminum prices have led to an increase in the ex-factory prices of products in the oil and gas extraction industry and the non-ferrous metal industry.
"From the perspective of factors leading to the decline, the supply of cement exceeds the demand, which drives the fall in the ex-factory prices of non-metallic mineral products; the decline in steel demand drives the fall in the ex-factory prices of products in the ferrous metal smelting and rolling processing industries. Affected by factors such as trade frictions and market competition, the ex-factory prices of products in industries such as electrical machinery, computer communications, and automobile manufacturing have fallen to varying degrees," said Zhang Xuewu, director of the Analysis and Forecasting Department of Price Monitoring Center of the commission.
On a monthly basis, the PPI edged down 0.6 percent in September, a narrower decline compared to the previous month, affected by factors such as fluctuations in international commodity prices and insufficient effective demand in the domestic market.
Multiple factors lead to year-on-year decline in China's PPI: expert
Various celebrations are being staged across China in anticipation of the fast-approaching New Year's Day and the upcoming Chinese New Year holiday, or Spring Festival, boosting the market for related goods as more revelers get into the festive spirit.
In Beijing, more than 1,000 lanterns themed around fashion and technology are offering a colorful display in the city's Wenyuhe Park, making it one of the largest lantern festivals in the city this year.
In Shanghai, business districts have launched a series of themed decorations, exhibitions, performances, and interactive activities. Local authorities have also distributed consumption coupons, further stimulating consumer spending during the New Year's Day holiday, which falls on Wednesday.
In the nearby city of Hangzhou in the eastern Zhejiang Province, several promotional activities have been introduced to boost consumption. Additionally, business areas and shopping streets have been upgraded to meet the consumer demand for high-quality goods.
Special Spring Festival fairs have also been set up across the country as Chinese people gear up for their largest annual celebration around the Chinese New Year, which lands at the end of January in 2025.
In Huaiyuan County of east China's Anhui Province, a local fair is attracting visitors with a variety of well-known agricultural products. In Zhangzhou City of the coastal Fujian Province, a one-stop feature fair allows both visitors and locals to purchase a wide range of items.
Meanwhile, in northeast China's Jilin Province, local authorities in the city of Ji'an have sought to take advantage of the snowy conditions by integrating winter sports, offering visitors the chance to enjoy a range of snow and ice activities while shopping for Spring Festival goods.
Additionally, flowers are in high demand at many marketplaces across China as more people look to prepare some floral decorations as part of the celebrations.
In Kunming of southwest China's Yunnan Province, a special flower street featuring Chinese New Year flowers has been set up, where over 15,000 flowers are available, including more than 120 varieties of orchids.
Local flower markets area also in full bloom in various other places, from the northern cities of Shijiazhuang and Taiyuan to Hetian in northwest China's Xinjiang Uygur Autonomous Region, all offering a wide variety of creative and unique flowers, which have been well received by residents.
New Year celebrations help boost market for festive goods
