China's Annual Inflation Rate Down to 2.1% in May


China's consumer price index (CPI) slowed to 2.1 percent in May, the lowest in three months. The food prices increased by 3.2 percent, while the non-food prices by 1.6 percent. The prices of consumer goods went up by 1.8 percent and the prices of services grew by 2.8 percent.

The prices grew by 2.1 percent in cities and 2.2 percent in rural areas. On average from January to May, the overall consumer prices were up by 2.4 percent over the same period of the previous year.

According to the estimates, in the 2.1 percent growth in May, the carryover effect of last year’s prices rising accounted for 1.3 percentage points, while new prices rising factors in this year accounted for 0.8 percentage point.

In May, food prices went up by 3.2 percent year-on-year, affecting nearly 1.05 percentage points increase in the overall price level. The biggest increases were registered for: the prices of grain (+5.1 percent), fresh fruits (+6.5 percent), meat, poultry and related products (+1.6 percent) and eggs (+11.5 percent). Price of pork was down by 4.9 percent and fresh vegetables by 1.9 percent.

Among other categories, the increases were registered for prices of clothing (+2.5 percent); household facilities, articles and maintenance services (+1.6 percent); health care and personal articles (+1.5 percent);  transportation and communication (+1.2 percent); recreation, education, culture articles and services grew (+1.3 percent); residence (+3.0 percent).

In May, the month-on-month consumer prices was down by 0.6 percent, of which, prices decreased 0.6 percent in cities and 0.5 percent in rural areas. The food prices went down by 1.6 percent, the non-food prices went up by 0.1 percent. The prices of consumer goods decreased 0.8 percent, and the prices of services kept at the same level.

China


NBS, Anna Fedec anna@tradingeconomics.com
6/9/2013 1:02:27 PM