Despite the impetus, the demand for Chinese consumers is the inflation of consumers

China’s consumer prices fell for the fourth consecutive month in May as Beijing Stimulus actions It is not enough to increase domestic use, price wars in the automotive sector increase downward pressure.

That the Consumer Price Index fell 0.1% over the previous year Data of the National Bureau of Statistics released on MondayCompared to an average estimate for a 0.2% decline in Reuters voting analysts.

CPI Slipped into a negative area In February, it fell by 0.7% by a year ago and continued to decline by 0.1% from year to year in March and April.

According to air data, the increase in core inflation, food and fuel prices has increased by 0.6% in May – the increase in January this year.

Separately, inflation in the country’s factory-gate or producer’s prices made it ened, Fell 3.3% by a year According to the LSEG data, it marks a sharp decline compared to the steep drop of July 2023 and the 3.2% decline of analysts since July 2023.

Wholesale prices have remained in the inflation area since October 2022.

“The bruised price war in the automotive industry has reduced prices,” said HIV Jong, president and chief economist at PinPoint Asset Management.

Chinese policymakers have insisted on the automotive industry Stop cruel price warsThis hurt the profitability and efficiency of transactions, while driving prices were low.

“The price war in the automotive sector is another sign of the driving prices of the fierce competition,” Zhang said, property prices fall for low pressure on consumer prices.

Although exports are strong, Jong said, “Finally, China has to rely on domestic demand to fight inflation.”

Factory-Gate prices for coal mining, and oil and gas extraction firms saw the largest decline in prices, fell 18.2% and 17.3% respectively a year ago Showed official data.

NBS chief statistician Lijuan Dong Emphasis has been given to the need “Much stronger and intended to increase the use of use.”

On May 7, China’s top financial regulators unleashed a riot of policy stages aimed at increasing the country’s tariff-hit economy. Central Bank Cut of China Important Interest Rates by 10 Basis Points Reduced the required proportion of the historic-low level and the required ratio of reserve, which is determined by 50 basis points in the reserve.

US President Donald Trump has raised tariffs on Chinese goods to 145%, prompted to avenge the Beijing duties and other restricted measures, such as export controls on its critical minerals.

On May 12, the US and China were relieved to the economy after a preliminary agreement in Switzerland’s Geneva, which caused both sides to abandon more tariffs. According to the Think Tank, Washington has reduced its tariffs to 51.1%, while Beijing has reduced the tax on American imports to 32.6% Peterson Institute for International EconomicsIt allows a little space to negotiate with both sides.

Chinese Vice Premier and a major business representative they are alive Is expected to meet a US trade consultation team led by Treasury Secretary Scott Besant in London After the day after the updated business talks.

The second round of meetings come after the tension between the two sides, as the Geneva agreement was accused of violating the deal.

Washington has been blamed for a slow walk by a pledge to approve the export of additional critical minerals to the US, and China has criticized the US decision and additional export restrictions on the US decision to impose new restrictions on students’ visas.

The Chinese Ministry of Commerce said on Saturday To review and continue approving Applications for exporting rare earth, referring to the increasing demand for minerals in robotics and new fuel automotive fields.

As the temporary trade agreement with the US shakes, markets are looking at whether it will expel more monetary ease to increase the Beijing economy.

In the article published last week, Government Media China Securities Journal To support growth, the PBOC said that the RRR could be overthrown later this year and the government would soon end a break about the government bond trading. Had a central bank Bond purchases paused in January In an attempt to block the plunge bond yield and impaired currency.

At the end of this month, the annual Lujiazui Forum will be held in Shanghai, where China’s top financial regulators, PBOC Governor Pan Gangsheng will deliver keynote addresses. Shanghai government officials told reporters Last month Important monetary policies are revealed in the forum.

China will report its trade data after Monday, showing that exports have increased by 5% per year, but the import has fallen by 0.9% by a year.

– CNBC’s Evelyn Cheng has contributed to the story.