BEIJING, June 12, 2024 (BSS/AFP) - Consumer prices in China rose slightly
last month, data showed Wednesday, though analysts warned more work was
needed to boost demand as leaders struggle to reignite growth in the world's
number two economy.

The consumer price index rose 0.3 percent on-year in May, unchanged from the
increase recorded in April and the fourth straight month in positive
territory, according to the National Bureau of Statistics.

However, the figure was off the 0.4 percent forecast by a Bloomberg survey of
analysts.

Factory gate prices, meanwhile, continued to fall, extending a deflationary
run that has persisted since late 2022.

The producer price index (PPI) dropped 1.4 percent on-year last month, though
that was an improvement on the 2.5 percent plunge suffered in April and
slightly better than Bloomberg forecasts.

Chinese leaders have been seeking to boost consumer spending as economic
headwinds such as mounting property sector debt and youth unemployment
continue to drag on growth.

"The improvement in PPI is largely driven by commodity prices such as copper
and gold, which is not a reflection of China's domestic demand," Zhiwei
Zhang, president and chief economist of Pinpoint Asset Management, said in a
note.

Recent decisions by authorities aimed at easing pressure on the real estate
sector are a "step in the right direction", Zhang said, adding that "property
sales in recent weeks have not rebounded".

"A more comprehensive and proactive policy stance covering (the) fiscal,
monetary, and property sector may be necessary to boost domestic demand more
effectively."