China Inflation Rate Up to 1.4%


China's annual inflation rate accelerated to 1.4 percent in February of 2015 from a five-year low 0.8 percent in the previous month and faster than market expectations. The politically sensitive food prices increased 2.4 percent while non-food cost rose at a slower 0.9 percent.

Among food prices, the highest increases came from egg (+11.4 percent in February from +8.3 percent in January), fresh vegetables (+4.3 percent from -0.6 percent) and fresh fruit (+4.1 percent from +3.3 percent). Prices decreased for pork (-1.5 percent from -5.3 percent) and liquid milk and dairy products (-1.5 percent from -0.5 percent).

For non-food categories, upward pressures came from prices of: household services and maintenance services (+9.8 percent from 4.6 percent); Western medicine (+1.3 percent from +1.2 percent) and travel (+1.6 percent from -7.8 percent). While cost remained stable for clothing (+3.0 percent) and education services (+2.9 percent), prices moderated for health care services (+1.6 percent from +1.7 percent). Downward price pressures came from: transport and communications (-1.7 percent from -1.1 percent), water, electricity and fuels (-1.9 percent from -2.0 percent) and liqueur (-1.5 percent from -1.1 percent).
On a monthly basis, consumer prices also quickened 1.2 percent in February, following a 0.3 percent increase in the preceding month.

Producer prices index fell by 4.8 percent from a yer earlier in February, worsening from a 4.3 percent fall in the preceding month. The index has been in a chronic decline since March 2012.

China Inflation Rate Up to 1.4%


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
3/10/2015 9:10:59 AM