China’s consumer inflation has hit an 18-month low, as the nation continues to experience an uneven economic recovery. The government has set a target for average consumer prices in 2023 to be around 3%. This is lower than the annual rate of 2% that was seen in 2022.
The Chinese government is taking steps to ensure that its citizens do not suffer from high levels of inflation and can maintain their purchasing power over time. To achieve this goal, it has implemented policies, such as increasing investment into infrastructure projects and encouraging consumption through tax cuts and subsidies. It also plans on expanding access to credit by providing more lending opportunities for small businesses, which will help stimulate domestic demand further down the line.
In addition, China’s central bank recently announced measures aimed at keeping liquidity stable while controlling financial risks within the economy; these include reducing reserve requirement ratios for banks and introducing targeted reductions in interest rates on loans extended by commercial lenders. These efforts should help keep inflation under control going forward while allowing households greater spending power throughout 2023 – something which could give China’s economy much-needed support during this period of uncertainty.
Read more at CNBC
