China Inflation Rate Steady in March


China's annual inflation rate was recorded at 1.4 percent in March of 2015, the same as in the previous month and above market expectations. The politically sensitive food prices increased 2.3 percent while non-food cost rose at a slower 0.9 percent.

Among food prices, the highest increases came from fresh fruits (+6.7 percent in March from +4.1 percent in February), egg (+5.6 percent from +11.4 percent) and fresh vegetables (+0.4 percent from +4.3 percent). Prices of pork also increased by 2.0 percent, following a 1.5 percent drop in February. In contrast, prices of liquid milk and dairy products  declined by 1.7 percent after a 1.5 percent fall in the previous month.

For non-food categories, upward pressures came from prices of: education services (+3.2 percent from +2.9 percent) and Western medicines (+1.4 percent from +1.3 percent). In contrast, downward pressures came from prices of: transport and communication (-1.5 percent from -1.7 percent), travel (-1.3 percent from +1.6 percent) and liqueur (-1.4 percent from -1.5 percent). While prices remained stable for clothing (+3.0 percent), health care services (+1.6 percent)  and water, electricity, fuel (-1.9 percent), cost moderated for household services and maintenance services (+1.2 percent from 9.8 percent). 

On a monthly basis, consumer prices declined by 0.5 percent in March, following a 1.2 percent increase in the preceding month.

The producer price index fell by 4.6 percent from a yer earlier in March, improving from a 4.8 percent drop in February. The index has been in a persistent decline since March 2012.

China Inflation Rate Steady in March


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
4/10/2015 12:11:32 PM