China Inflation Rate Rises to 1.5% in December


China's annual consumer inflation edged up to 1.5 percent in December from 1.4 percent in the previous month. The politically sensitive food prices accelerated to 2.9 percent while non-food cost rose at a slower 0.8 percent.

Among food prices, the highest increases came from egg (+14.0 percent in December from +16.5 percent increase in November), fresh fruits (+10.4 percent from +14.0 percent) and fresh vegetables (+7.2 percent from -5.2 percent). Prices of pork decreased (-4.9 percent from -3.8 percent).

For non-food categories, downward price pressure came from transport and communication (-1.4 percent from -0.8 percent); travel (-3.6 percent  from -2.9 percent) and water, electricity and fuel (-1.4 percent from -0.2 percent). Cost of clothing was stable (+2.6 percent) while prices of  health care and personal products were higher (+1.5 percent from +1.3 percent). Prices were lower for household equipment and maintenance services (+1.1 percent from +1.2 percent) and entertainment and educational products and services (+0.9 percent from +1.0 percent). 

For full year of 2014 consumer inflation was recorded at 2 percent, well below the government target at around 3.5 percent .

Month-on-month, consumer prices accelerated 0.3 percent in December, after a 0.2 percent drop in the preceding month.

Producer prices index declined by 3.3 percent from a year earlier, compared with a 2.7 percent fall  in November. The index has been in a negative territory since March of 2012.

China Inflation Rate Rises to 1.5% in December


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
1/9/2015 11:02:55 AM