China Inflation Rate Eases in May


China's annual inflation rate was recorded at 1.2 percent in May of 2015, slowing from 1.5 percent increase in the previous month and slightly below market consensus. The politically sensitive food prices increased by 1.6 percent while non-food cost rose at a slower 1.0 percent.

Among food, downward prices pressure came from: egg (-13.2 percent in May from -3.7 percent in April), fresh fruit (-3.2 percent from +1.5 percent), liquid milk and dairy products (-1.3 percent from -1.7 percent). In contrast, upward pressure came from cost of: fresh vegetables (+6.5 percent from +7.2 percent) and meat and poultry (+3.1 percent from +5.0 percent). Prices of pork also rose by 5.3 percent, following a 8.3 percent increase in the previous month.
 
For non-food categories, prices fell for transport and communication (-1.7 percent from -1.6 percent); travel (-0.3 percent from -0.7 percent) and water, electricity and fuel (-2.0 percent from -2.0 percent). In contrast, prices increased for: clothing (+2.9 percent from 2.8 percent) and entertainment and educational products and services (+1.7 percent from +1.6 percent).
 
While prices moderated for household equipment and maintenance (+1.0 percent from +1.1 percent), cost remained unchanged for healthcare (+1.8 percent).
 
On a monthly basis, consumer prices declined by 0.2 percent in May, the same pace as in  the preceding month.
 
The producer price index fell by 4.6 percent from a yer earlier in May, following a 4.6 percent drop in April. The index has been declining since March 2012.

China Inflation Rate Eases in May


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
6/9/2015 3:23:29 AM