China Inflation Rate Below Expectations in September


China's annual inflation rate was recorded at 1.6 percent in September of 2015, down from 2.0 percent in the previous month and below market forecasts. The politically sensitive food prices increased by 2.7 percent while non-food cost rose at a slower 1.0 percent.

Among food, upward prices pressure came from: fresh vegetables (+10.4 percent in September from +15.9 percent in August) and meat and poultry (+8.2 percent from +9.3 percent). Prices of pork also rose by 17.4 percent, following a 19.6 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-10.2 percent from -11.2 percent), fresh fruits (-10.7 percent from -8.1 percent) and liquid milk and dairy products (-0.9 percent from -1.0 percent).

For non-food categories, upward prices pressure came from: tobacco and liquor (+3.8 percent from +3.8 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 (+2.1 percent from +1.9 percent); entertainment and educational products (+1.4 percent from +1.8 percent) and housing price (+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 0.1 percent, slowing from a 0.5 percent increase in August.

The producer price index fell by 5.9 percent in September from a year earlier, the same pace as in a month earlier. It is the deepest drop since September 2009. 

China Inflation Rate Below Expectations in September


National Bureau of Statistics l Rida Husna | rida@tradingeconomics.com
10/14/2015 11:59:40 AM