China Inflation Rate Eases to 5-Year Low


China's annual inflation rate slowed to 0.8 percent in January, significantly down from 1.5 percent in the previous month and touching the lowest level since November of 2009. The politically sensitive food prices increased 1.1 percent while non-food cost rose at a slower 0.6 percent.

Among food prices, pork recorded the highest drop (-5.3 percent in January from -4.9 percent in the previous month), followed by fresh vegetables (-0.6 percent from 7.2 percent). Increases were recorded for egg (8.3 percent from 14.0 percent) and fresh fruits (3.3 percent from 10.4 percent).

For non-food categories, prices fell for: transport and communication (-2.2 percent from -1.4 percent); travel (-7.8 percent from -3.6 percent) and water, electricity and fuel (-2.0 percent from -1.4 percent). In contrast, prices increased for: clothing (3.0 percent from 2.6 percent) and health care and personal products (1.6 percent from 1.5 percent). Prices moderated for household equipment and maintenance services (0.9 percent from 1.1 percent) and entertainment and educational products and services (0.3 percent from 0.9 percent).

Month-on-month, consumer prices rose 0.3 percent in January, the same pace as in the preceding month.

Producer prices declined by 4.3 percent from a year earlier, the lowest since September of 2012, following a 3.3 percent fall in December.

China Inflation Rate Eases to 5-Year Low


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
2/10/2015 9:29:10 AM