In the first quarter, the price operation was generally stable.

PPI rose by 3.7% and CPI by 2.1%.
In the first quarter, the price operation was generally stable.
It provides a good macro environment for the healthy development of the national economy.

On April 11th, the national consumer price index (CPI) and the producer price index (PPI) released by the National Bureau of Statistics in March showed that CPI decreased by 1.1% month-on-month and increased by 2.1% year-on-year. PPI decreased by 0.2% month-on-month and increased by 3.1% year-on-year.

Price reflects the relationship between supply and demand and is a "barometer" of national economic development. Since the beginning of this year, the State Council of the CPC Central Committee has adhered to the general tone of striving for progress while maintaining stability, continuously promoted structural reforms on the supply side, gradually rationalized the price formation mechanism in important areas, continuously optimized the high-quality development environment, maintained a basic balance between market supply and demand, and maintained a generally stable price operation, which not only showed that the overall operation of the national economy was relatively healthy, but also provided a good macro environment for the healthy development of the national economy.

The price increase in the production sector has declined, and prices in most industries have been relatively stable.

Overall, the PPI increase has declined. In the first quarter, PPI rose by 3.7% compared with the same period of last year, and the growth rate dropped by 2.1 percentage points compared with the fourth quarter of last year. Among them, the year-on-year growth rate of PPI in March dropped by 0.6 percentage points compared with the previous month. The relevant person in charge of the Urban Division of the National Bureau of Statistics analyzed that the PPI increase in the first quarter was a normal decline from a high level, and the upward trend tended to be stable. Judging from the factors affecting the price increase, on the one hand, it has achieved remarkable results in reducing production capacity, adjusting structure and improving supply quality; On the other hand, the macro-economy is stable and improving, investment and consumer demand maintain rapid growth, and the relationship between supply and demand continues to improve.

By industry, the price of most industrial sectors rose steadily. In the first quarter, among the 40 major industries surveyed, the prices of products in 32 industries rose. Among them, there are 5 with an increase of more than 10%, 9 with an increase of 3%-10%, and 18 with an increase of less than 3%. Although the prices of bulk commodities such as ferrous metal smelting and rolling processing industry, oil and natural gas mining industry, oil, coal and other fuel processing industry, non-ferrous metal smelting and rolling processing industry, coal mining and washing industry have increased, compared with the fourth quarter of last year, the increase rates have all dropped. The positive changes in the pattern of supply and demand have created favorable conditions for improving the efficiency of enterprises. In the first two months of this year, the total profits of industrial enterprises above designated size reached 291.81 billion yuan, up 16.1% year-on-year.

Although the price increase in the consumer sector fluctuated, it was moderate.

Compared with the same period of last year, the monthly increase of CPI has fluctuated this year, but it is generally stable. In the first quarter, CPI rose by 2.1% compared with the same period of last year, continuing a moderate upward trend. Among them, from January to March, it rose by 1.5%, 2.9% and 2.1% respectively, and the increase fluctuated, mainly due to changes in food prices. In February, food prices rose by 4.4% month-on-month due to the increase in demand due to the Spring Festival, but the widespread cooling and rain and snow affected the supply. In March, after the holiday, the demand dropped and the weather became warmer, and the relationship between supply and demand was adjusted. Food prices fell rapidly, down by 4.2%.

From the ring comparison, the CPI in March changed from last month’s increase to a decrease, mainly due to the fading of "holiday factors". Sheng Guoqing, senior statistician of the Urban Department of the National Bureau of Statistics, analyzed that, first of all, food prices fell more after the holiday, from 4.4% in the previous month to 4.2%, which affected the CPI decline by about 0.86 percentage points. Among them, the prices of fresh vegetables and fresh fruits decreased by 14.8% and 2.4% respectively; The prices of pork and aquatic products decreased by 8.4% and 3.2% respectively; The price of eggs dropped by 9.2%. The total impact of the above five types of fresh food on CPI decreased by about 0.81 percentage points. Secondly, after the holiday, the number of concentrated trips decreased, and the price of transportation and tourism dropped sharply. The prices of air tickets, travel agency fees and long-distance bus tickets dropped by 18.7%, 11.7% and 4.7% respectively. Thirdly, affected by the price adjustment of domestic refined oil products, the prices of gasoline and diesel oil decreased by 2.6% and 2.9% respectively. In addition, clothing season, the price rose by 0.7%; After the holiday, the demand for renting houses increased, driving the housing price to rise by 0.2%.

The relevant person in charge of the Urban Division of the National Bureau of Statistics believes that the rise in non-food prices is slightly faster, which is a reflection of the upgrading of consumption structure. In the first quarter, non-food prices rose by 2.2%, with a slight change between 2.2% and 2.4% for five consecutive quarters. Among them, the price of industrial consumer goods rose by 1.5%, and the price of services rose by 2.9%. With the continuous improvement of people’s living standards and the gradual upgrading of consumption structure, the significant increase in service consumption demand is the main factor for the rise in service prices. In the first quarter, the prices of family services and tourism services rose by 5.4% and 4.1% respectively, while the prices of old-age services, postal services and education services rose by 3.5%, 3.3% and 2.7% respectively.

In the near future, there are foundations and conditions to keep the overall price stable.

From the perspective of agricultural products supply, China’s modern agricultural production has improved quality and efficiency, grain production has been bumper year after year, and the supply of bulk agricultural products is abundant, which can meet the needs of the consumer market;

From the perspective of industrial products supply, both general industrial consumer goods and durable consumer goods have sufficient supply capacity, especially with the continuous advancement of supply-side structural reforms, the supply capacity of high-end industrial consumer goods is also constantly improving;

From the perspective of service product supply, although it is an area with rapid price increase and great demand potential, the supply capacity is also increasing.

"Although there will be some fluctuations in the price operation due to the current changes in the foreign economic environment and the adjustment of the domestic supply and demand relationship, there is a foundation and condition for the overall price stability in the recent period, and there is also sufficient supply guarantee." The person in charge said. (Reporter Lu Yanan Drawing Guo Xiang)