Inflation began in China last month, official data said on Sunday, as the lunar New Year holiday increased the January cost.
China has struggled to increase consumption and has struggled to reduce it for months because slow costs, a reduction in property and balloons of local government loans are all weight.
According to the National Bureau of Statistics, Consumer Price Index (CPI), an important step for inflation, increased by 0.5 % last month to 0.1pc in November.
Reading from January, which was compatible with the beginning of the long lunar year holiday this year, is the highest after reading 0.6pc in August.
Reading last month has exceeded 0.4pc to rise Bloomberg Analysts.
The NBS reported the increase in the prices of the holiday -related goods, where millions of people travel to their hometowns and celebrate Eid and alcohol.
Fresh vegetable prices increased by 2.4pc year year and pork prices increased by 13.8pc.
Goldman Sixx analyst Zincon Chen wrote in a note on Sunday, “The reason for the rise in prices last month is that” usually the main reason for the New Year’s holiday and the main reason for tourism -related services prices Is “
“But the promotion is likely to become a drag with the end of the climate demand in February,” Chen said.
China suffered a sharp decline in prices for 14 years in January 2024, at the end of a four -month period.
Inflation was below 0.5pc for nine months of 2024.
Although defense suggests that the cost of goods is decreasing, it pose a risk to the wider economy as consumers postpone purchase in such situations, hopefully in hope of a further reduction.
The lack of demand can then force companies to reduce production, freeze jobs or leave workers, while the current stock may also have to be exempted.
Beijing unveiled many steps to promote the economy last year, including a reduction in interest rates and cancellation of restrictions on domestic buying.
Last month, policy makers extended the subsidy scheme for normal household items from water cleansers to laptops and electric vehicles.
The Chinese Trade Ministry said Thursday that during the holiday period, sales of domestic equipment and communication equipment in “key monitoring retail businesses” were more than 10pc year.
To shrink renewable sources under the pressure of reform of China market
China’s top economic planner said on Sunday that it would reduce renewable energy subsidies in reforms, aimed at opening the rise sector in market forces.
China has tried to measure government support for renewable energy companies in recent years as the sector reaches widespread.
It had installed a record amount of renewable energy last year and advanced the target of installing at least 1,200 GW solar and air capacity by 2030.
The National Development and Reforms Commission (NDRC) said in a statement that new clean energy projects completed after June 1 will have to sell electricity at the rates set by the market.
The NDRC called on energy generators to “advance clean energy participation in market transactions”.
The Commission also said it “encourages power suppliers and power buyers to sign multi -year purchase contracts and manage premature market risks.”
According to the International Energy Agency, Beijing invested more than $ 50 billion in the new solar supply capacity from 2011 to 2022.
According to research published last year, it has been together with every other country and double the solar capacity.
However, China’s grid is struggling to maintain.
Renewable supply is being blocked rapidly to prevent the grid from being overwhelmed, the process called cricket.
Beijing has launched a series of several steps over the past decade, aimed at removing renewable energy providers with state financial support.
It eliminated subsidies for new solar powered stations and Weiswear wind power projects in 2021.
