China Inflation Rate Steady at 2.3% in April


Consumer prices in China rose 2.3 percent year-on-year in April of 2016, the same pace as in the previous two months and below market consensus of a 2.4 percent increase. The politically sensitive food prices increased by 7.4 percent while non-food cost rose at a slower 1.1 percent. Cost of consumer goods gained 2.5 percent and those of services advanced 2.0 percent.

Among food, upward prices pressure came from: fresh vegetables (+22.6 percent in April from 35.8 percent in March), meat and poultry (+20.1 percent from +16.5 percent) and tobacco (+6.4 percent from +6.4 percent). Prices of liquid milk also rose 0.3 percent from 0.1 percent in the preceding month. Prices of pork also rose by 33.5 percent, following a 28.4 percent increase in March. In contrast, downward pressure came from cost of: egg (-1.6 percent from -5.8 percent) and fresh fruits (-7.9 percent from -10.2 percent). 

For non-food categories, upward prices pressure came from: clothing (+1.5 percent from +1.5 percent); rent, fuel & utilities (+1.4 percent from +1.3 percent), household equipment supplies and services (+0.5 percent from +0.4 percent); education, culture and entertainment (+1.2 percent from +1.2 percent),  healthcare (+3.2 percent from +3.1 percent) and other goods and services (+1.7 percent from +1.7 percent). In contrast, downward prices pressures came from transport and communications (-2.4 percent from -2.6 percent).

On a monthly basis, consumer prices dropped by 0.2 percent, as compared to a 0.4 percent decline in the preceding month and in line with estimates.

The producer price index fell by 3.4 percent year-on-year in April, compared to a 4.3 percent drop in March. It is the smallest fall since November 2014. The index has been in a negative territory since March 2012.

China Inflation Rate Steady at 2.3% in April


Statistics Chinal Rida Husna | rida@tradingeconomics.com
5/10/2016 3:03:11 AM