Raising concerns that China's huge economy is still pressed by weak demand, the nation's producer price index (PPI) declined by 2.9% on year in October, the National Bureau of Statistics (NBS) reported on Saturday.
The PPI, in general, measures the price of goods "at the factory gate." It is distinct from consumer price indices that measure prices charged in retail locations.
China's producer price index crested in June of 2022, but since then has steadily declined, as demand for industrial products in the nation has been sluggish. China's PPI in October declined for the 25th month in a row, measured on year.
In particular, the PPI sub-index for building materials and non-metals declined 6.7% on year in October, reflecting soft demand from China's struggling real estate sector.
In addition, producer prices fell in October in the oil and gas extraction, oil and coal processing, chemical products, and automobile-making sectors, reported the NBS.
The soft producer prices in part reflect an economy not growing as quickly as Beijing would like. China's gross domestic product (GDP) expanded by 4.6% on year in the third quarter, a little below Beijing's annual target of 5% for 2024, reported officials.
In recent months, Beijing has ushered in fiscal stimulus measures, while the People's Bank of China has lowered interest rates and cut reserve requirements for banks, in bids to boost the nation's economy.
Over the weekend, Beijing unveiled a $1.2 debt-swap plan, to deleverage local and state governments, to allow them to boost spending.
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