Producer-price-index-china
The National Bureau of Statistics (NBS) noted that China’s producer price index (PPI) inflation rose 8.3 percent in March this year.
This happened because of geopolitics between Russia and Ukraine which pushed up world oil prices. On the other hand, tightening mobility for the sake of spreading the COVID-19 pandemic has also reduced food supply and consumer costs.
“Geopolitical and other factors have kept global commodity prices on the rise, pushing prices for oil, non-ferrous metals, and other related industries to rise at home,” said NBS senior statistician Dong Lijuan. ). 4).
Meanwhile, China’s consumer price inflation index (CPI) rose 1.5 percent.
Lijuan said that although consumer demand has declined since the start of the year, some food prices have continued to rise due to rising prices for wheat, corn, and soybeans.
The price increase reached its highest point in mid-March following the Russian invasion of Ukraine. Conflicts disrupt the distribution of supplies of wheat, corn, and soybeans because the two countries are the largest exporters of these commodities.
China’s Head of Economics Nomura Ting Lu said CPI inflation could continue to rise this month. This is because many people in China are hoarding food and other necessities due to the lockdown.
“CPI inflation could rise further in April as households across China have been stockpiling food and other necessities after taking lessons from the impact of the Shanghai lockdown,” he said.
Lu said during the lockdown, residents had difficulty getting food. On the other hand, all these services also disrupt the supply chain of the country.
Due to lockdowns and transportation disruptions in northeastern China, China’s largest grain production base, spring farming this year is possible too. In addition, the risk of food shortages may increase in the second half (April),” he said.
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