(Yicai) May 13 -- China’s consumer inflation rose for the third straight month in April, mainly because of high international prices of crude oil. Meanwhile, factory gate prices declined at a slower pace than in March, as industrial production recovers.

The consumer price index edged up 0.3 percent in April from a year earlier, compared with 0.1 percent in March, according to data released by the National Bureau of Statistics on May 11. The CPI gained 0.7 percent in February after falling 0.8 percent in January.

The CPI rose on the back of higher prices of international oil and non-food items, said Wang Qing, chief macroeconomic analyst at Golden Credit Rating.

Core CPI, which excludes food and energy prices, stayed at a low level, inching 0.7 percent higher, mostly because of the property market downturn and the aftermath of the Covid-19 pandemic, Wang noted.

That illustrates the need to boost consumer confidence, which is why China recently introduced an extensive trade-in policy for old consumer goods, he added.

Year-on-year CPI growth may remain steady as the economy recovers and demand picks up on seasonal factors, said Wu Chaoming, deputy director of the Chasing International Economic Institute.

The producer price index fell 2.5 percent in April from a year earlier, versus the prior month’s 2.8 percent drop, reflecting the uptick in industrial production despite pressures, the NBS data also showed.

The PPI will continue to decline more slowly and then steadily rebound, according to NBS Deputy Commissioner Sheng Laiyun. Factors such as the economic recovery, rebounding demand, and policy support effects will be conducive to price markups, Sheng said, adding that structural adjustment in some sectors and the advancement of supply-side reform will bring positive changes to demand and supply dynamic.

The meeting of the Political Bureau of the Central Committee of the Communist Party of China in late April emphasized the importance of consolidating the economic recovery and asked local governments to step up efforts, especially in expanding domestic demand.

Anhui, Jiangxi, and Henan provinces recently arranged their economic work for the second quarter of the year and put priority on growing demand.

Editor: Futura Costaglione