China Inflation Rate Below Estimates In March


China's consumer prices rose 0.9 percent year-on-year in March of 2017, following a 0.8 percent rise in February but slightly less than market consensus of a 1.0 percent gain. Cost of non-food rose more than in the prior month while cost of food continued to fall.

In March, the politically sensitive food prices declined by 4.4 percent (from -4.3 percent in the prior month) while non-food cost rose 2.3 percent (from 2.2 percent). Cost of consumer goods fell 0.1 percent (from - 0.1 percent) and those of services went up 2.7 percent (from 2.4 percent).

Among food, prices dropped for: pork (-3.2 percent from -0.9 percent in a month earlier), fresh vegetables (-27.9 percent from -26.0 percent), eggs (-11.8 percent from -14.9 percent), milk (-0.2 percent from -0.2 percent) and tobaco (-0.2 percent from -0.2 percent). Meanwhile, prices rose at a faster pace for fresh fruits (3.0 percent from 2.1 percent).

For non-food categories, cost went up more than in the preceding month for: clothing (1.3 percent from 1.2 percent), household goods and services (0.7 percent from 0.5 percent), transport & communication (2.0 percent from 1.7 percent); education, culture & recreation (2.3 percent from 1.8 percent) and healthcare (5.3 percent from 5.1 percent). Prices went up at a slower pace for:  rent, fuel & utilities (2.4 percent from 2.5 percent) and and other goods and services (2.9 percet from 3.1 percent).

On a monthly basis, consumer prices fell 0.3 percent, following a 0.2 percent drop in a month earlier and matching market consensus.

The producer prices index rose 7.6 percent year-on-year in March of 2017, slower than a 7.8 percent rise in February. The figure came in line with market consensus and marking the seventh straight month of increase. Cost went up at slower paces for most categories: means of production (10.1 percent from 10.4 percent in the prior month, namely extraction: 33.7 percent, raw materials: 14.9 percent and processing: 6.5 percent); consumer goods (0.7 percent from 1.1 percent, namely food production: 0.7 percent, clothing: 1.3 percent and daily use goods: 1.4 percent). In contrast, prices of consumer durable declined by 0.4 percent, following a 0.6 percent drop in February.

Statistics China l Rida Husna | rida@tradingeconomics.com
4/12/2017 4:55:32 AM