Prices affect both the economy and people’s livelihoods. How has Hengyang’s price trend been in 2024? On April 16, the Hengyang Survey Team of the National Bureau of Statistics released the latest data: in March, the city’s Consumer Price Index (CPI) dropped 0.5% month-on-month and 0.6% year-on-year, with the decline narrowing. The effectiveness of first-quarter policies to boost consumption is becoming increasingly evident.

Statistics show that Hengyang’s CPI in March fell 0.6% year-on-year, 0.1 percentage points less than the previous month. Food prices dropped 0.7%, non-food prices by 0.6%, consumer goods by 0.7%, and service prices by 0.6%. On average, from January to March, the CPI was down 0.2% compared to the same period last year. Month-on-month, CPI shifted from flat in February to a 0.5% decline in March, driven by a 1.7% drop in food prices, 0.3% in non-food items, 0.6% in consumer goods, and 0.4% in services.

Among the eight major categories, three saw year-on-year increases, while five declined. Food, housing, and transportation were the primary factors in the CPI decline. Specifically, education, culture, and entertainment prices fell 0.1%, healthcare by 0.2%, food, tobacco, and alcohol by 0.6%, housing by 1.1%, and transportation and communications by 2.8%. Meanwhile, clothing, miscellaneous goods and services, and household items showed year-on-year growth.

The month-on-month CPI decrease was largely due to falling prices in food, transport, and entertainment. Among the eight major categories, three rose, three fell, and two remained unchanged. Miscellaneous goods and services rose 0.1%, healthcare 0.1%, and household items 1.6%. Clothing and housing prices held steady, while food, tobacco, and alcohol declined 1.1%, entertainment 1.2%, and transportation 1.3%.

Since the beginning of the year, Hengyang has been effectively implementing policies to stabilize growth and stimulate consumption. Measures like “trade-in” subsidies are beginning to show results, promoting a healthy supply-demand cycle. According to the Hengyang Survey Team, the March CPI decline, both year-on-year and month-on-month, was mainly due to seasonal factors and falling oil prices. Warmer weather boosted supply of fresh vegetables and fruits, leading to a 1.7% drop in food prices, which accounted for about a 0.31 percentage point reduction in the CPI. Fresh fruit, meat, and vegetable prices fell by 2.0%, 2.8%, and 4.4% respectively, together contributing roughly 0.25 percentage points to the CPI drop. In addition, the travel off-season led to fewer travelers and lower prices, with airfares and travel agency fees down 5.4% and 7.4% respectively. International oil price declines also resulted in a 3.6% drop in domestic gasoline prices, reducing the CPI by around 0.15 percentage points.

Translator: Jing