National Bureau of Statistics: The improvement of supply and demand in the domestic market, and the continuous gradual optimization of market competition order are the main reasons leading to the rise in PPI.

On April 16th, Mao Shengyong, Deputy Director of the National Bureau of Statistics, stated at a press conference at the State Council Information Office that in March, the ex-factory prices of industrial products rose by 0.5% year-on-year, signaling an important positive trend. This ended 41 consecutive months of decline. Month-on-month, there have been 6 consecutive months of increase. Regarding the reasons for the rise in the Producer Price Index (PPI), Mao Shengyong pointed out three main reasons: Firstly, the further improvement of supply-demand relationship in the domestic market is the most important reason. In recent years, the rapid development of artificial intelligence in China has driven the expansion of related demand and price increases; the steady progress of green transformation has also boosted demand for green products, leading to some price rebounds. Prices reflect supply and demand relationships, so industrial prices reflect positive changes in supply and demand relationships. Secondly, the continuous gradual optimization of market competition order. Key industries are solidly and orderly advancing their production capacity. Thirdly, the influence of international factors has also become evident. Overall, the further improvement of the supply-demand relationship in the domestic market and the continuous gradual optimization of market competition order play a dominant role. Mao Shengyong stated that this positive change is conducive to smooth economic circulation, further improving corporate performance, and laying a solid microeconomic foundation for economic recovery.