Economic figures for August, released by the National Bureau of Statistics, have topped market expectations and consolidated signs of recovery. Industrial output, investment and retail sales all improved, while declines in consumer prices and producer prices slowed.
The National Bureau of Statistics says the consumer price index, a key gauge of inflation, continues its negative trend sliding 1.2 percent in August from a year ago, edging down from the minus 1.8 percent posted in July. This alleviated worries that massive stimulus spending might fuel a resurgence of inflation.
The producer price index, the key gauge for inflation at the factory-gate, went down 7.9 percent, compared to an 8-percent decline in July. Both figures topped market expectations.
Li Xiaochao, Spokesman of National Bureau of Statistics said "The slowdown in declines indicates an increase in market demand, as prices usually reflect changes in relations between supply and demand. Meanwhile, both CPI and PPI extended their negative trend in the first eight months, which indicates inflation is not a problem at the moment."
And it's also good news for industrial output, with that figure hitting a 12-month high in August, up 12.3 percent year-on-year.
Something that's proving to be a pillar in the Chinese economy -- urban fixed-asset investment, rose 33-percent in the first eight months. Retail sales also went up 15.4 percent, inching up from the figure in June.
The statistics bureau says the increase was mainly because the government's stimulus spending and nascent recoveries in overseas markets helped boost demand.
Despite the steady flow of positive figures over the past few months, the government has remained cautious. Premier Wen Jiabao repeated his pledges on Thursday to continue the government's pro-active spending policies to ensure continuous economic recovery.