China Inflation Rate at 12-Month High


China's annual inflation rate was recorded at 2.0 percent in August of 2015, up from 1.6 percent in the previous month and above market forecasts. The politically sensitive food prices increased by 3.7 percent while non-food cost rose at a slower 1.1 percent.

Among food, upward prices pressure came from: fresh vegetables (+15.9 percent in August from +10.5 percent in July) and meat and poultry (+9.3 percent from +7.6 percent). Prices of pork also rose by 19.6 percent, following a 16.7 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-11.2 percent from -14.3 percent), fresh fruits (-8.1 percent from -8.4 percent) and liquid milk and dairy products (-1.0 percent from -0.8 percent).

For non-food categories, upward prices pressure came from: tobacco and liquor (+3.8 percent from +3.6 percent); clothing (+2.9 percent from +2.9 percent); household equipment and maintenance service (+1.0 percent from +1.0 percent); health care and personal (+1.9 percent from +1.9 percent); entertainment and educational products (+1.8 percent from +1.7 percent) and housing rent (+0.8 percent from +0.8 percent). In contrast, prices declined for transport and communication (-2.1 percent from -1.8 percent).

On a monthly basis, consumer prices rose 0.5 percent, accelerating from a 0.3 percent  increase in July.

The producer price index fell by 5.9 percent from a year earlier, worsening from a 5.4 percent drop in July. It is the deepest drop since September 2009. 

China Inflation Rate at 12-Month High


National Bureau of Statistics l Rida Husna | rida@tradingeconomics.com
9/10/2015 8:13:48 AM