Inflation in China has fallen to its lowest level in more than two years

China, one of the world’s largest economies, has recorded its lowest inflation rate in more than two years, according to data from the World Bank National Bureau of Statistics NBSAndRecord CPI consumer price index Up 0.1% year-on-year, down from 0.7% recorded in March.

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The decline in prices was partly due to lower food and beverage prices, which rose from 2.4% in March to less than 1% in April.

Core inflation, which excludes food and beverage prices, rose 0.7% year-on-year, lower than the country’s forecast for this year, which had been set at around the 3% cap.

On the other hand, these numbers were a source of concern for analysts, who consider them a testament to China’s slow economic recovery, after the Corona pandemic.

But the charge in People’s Bank of China (PBOC)., Zou Lan Zou Landismissed these concerns, stating that there is no basis for long-term deflation or inflation, and that consumer orders are expected to pick up during the second half of this year.

Inflation in China is dropping to its lowest level in more than two years

Proposals to avoid deflation

Bank explained Standard CharteredThey expect inflation levels to reach 0% in the coming months, as higher crude oil prices in the first half of 2022 created a high comparison base.

Even with a sluggish inflation level, the Bank had projected a growth rate of more than 5% without adjusting interest rates, which are now at 1%.

In turn, experts concerned about the possibility of deflation presented various proposals to avoid it, as a professor of economics at Tsinghua University and a former member of the Advisory Board of the People’s Bank of China called Li DaokuiTo provide cash assistance to citizens to stimulate demand.

Also read: China is pushing to promote the use of the “digital yuan”

It appears that the country will also receive more than 300 billion yuan in taxes derived from direct spending, which has been enabled through cash grants, according to the professor. Daokui.

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