China Inflation Rate Accelerates in June


China's annual inflation rate was recorded at 1.4 percent in June of 2015, up from 1.2 percent increase in the previous month and beating market consensus. The politically sensitive food prices increased by 1.9 percent while non-food cost rose at a slower 1.2 percent.

Among food, upward prices pressure came from: fresh vegetables (+11.4 percent in June from +6.5 percent in May) and meat and poultry (+3.6 percent from +3.1 percent). Prices of pork also rose by 7.0 percent, following a 5.3 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-11.3 percent from -13.2 percent), fresh fruits (-8.8 percent from -3.2 percent) and liquid milk and dairy products (-1.1 percent from -1.3 percent)

For non-food categories, prices increased for: tobacco and liquor (+3.5 percent from +1.7 percent) and health care (+1.9 percent from +1.8 percent). In contrast, prices declined for transport and communication (-1.5 percent from -1.3 percent).

Prices remained unchanged for clothing (+2.9 percent), household equipment and maintenance (+1.0 percent) and entertainment and education (+1.7 percent).

On a monthly basis, consumer prices remained flat in June, following a 0.2 percent drop in the preceding month.

The producer price index fell by 4.8 percent from a year earlier, following a 4.6 percent drop in May. The index has been declining since March 2012.

China Inflation Rate Accelerates in June


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
7/9/2015 4:21:54 AM