China Inflation Rate Up 1.6% in July


China's annual inflation rate was recorded at 1.6 percent in July of 2015, up from 1.4 percent increase in the previous month and slightly above market consensus. The politically sensitive food prices increased by 2.7 percent while non-food cost rose at a slower 1.1 percent.

Among food, upward prices pressure came from: meat and poultry (+7.6 percent in July from +3.6 percent in June) and fresh vegetables (+10.5 percent from +11.4 percent). Prices of pork also rose by 16.7 percent, following a 7.0 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-14.3 percent from -11.3 percent), fresh fruits (-8.4 percent from -8.8 percent) and liquid milk and dairy products (-0.8 percent from -1.1 percent)

For non-food categories, prices increased for tobacco and liquor (+6.8 percent from +3.5 percent). In contrast, prices declined for transport and communication (-1.8 percent from -1.5 percent).

Prices remained unchanged for clothing (+2.9 percent), household equipment and maintenance (+1.0 percent), health (+1.9 percent) and entertainment and education (+1.7 percent).

On a monthly basis, consumer prices rose 0.3 percent, after remaining flat in June.

The producer price index fell by 5.4 percent from a year earlier, worsening from a 4.8 percent drop in May. It is the deepest drop since October 2009. 

China Inflation Rate Up 1.6% in July


National Bureau of Statistics l Rida Husna l rida@tradingeconomics.com
8/9/2015 3:32:54 AM