National Bureau of Statistics: Consumer demand is expected to gradually expand and there is a foundation for stable price operation.

Kang Yi, director of the National Bureau of Statistics, said at a press conference on January 19 that favorable factors for promoting a mild rebound in the Consumer Price Index (CPI) are accumulating. From a fundamental perspective, with the vigorous implementation of the targeted measures to boost consumption, especially the package of incremental measures such as financial and fiscal coordination to boost domestic demand, consumer demand is expected to gradually expand, providing a foundation for stable price operation. In December, the CPI rose by 0.8% year-on-year, the highest increase since March 2023. Increased food consumption during the New Year holiday, active consumption of dining out, visiting relatives and friends, and tourism services, as well as the approaching nine-day Chinese New Year holiday, are expected to contribute to the seasonal rebound of the CPI. Based on the preliminary information currently available, prices of fresh fruits, airline tickets, tourism, and other goods and services have generally remained stable with some increases since January. From the perspective of policy support, the effectiveness of industry self-discipline and capacity governance will continue to be evident, with further strengthening of capacity regulation in key industries this year, improvement of product standards and quality, which are conducive to price increases. Overall, promoting a reasonable increase in prices is not only beneficial for increasing business and household income, but also for stabilizing market expectations. It is necessary to continue to leverage the integrated effects of macroeconomic policies, expand consumer consumption, regulate market competition, actively address supply and demand issues, and promote a reasonable increase in prices.