The Consumer Price Index (CPI) will rise moderately in 2016 considering current economic conditions, while the Producer Price Index (PPI) will continue to decline but not as much as in 2015, the nation's top economic planner said on Wednesday.
While other countries are still recovering at a relatively slow pace, China's economic growth is still facing challenges, the National Development and Reform Commission (NDRC) said in a post on its website.
In addition, the nation is tackling issues such as overcapacity and high inventories, so growth will maintain a stable but slow pace.
However, the government will come up with loose monetary policies to support economic restructuring. For example, the target for broad money supply (M2) growth is 13 percent, and that expansion will give a boost to the CPI as well, according to the post.
Due to continuing downward pressure, China is facing difficulties such as sluggish investment demand and hurdles in export activities, which will have an impact on the PPI, which measures price changes for industrial products for the domestic market, the NDRC said.
Still, the government has adopted measures to prevent the components of the PPI, especially commodities, from dropping sharply.
