China Inflation Slows Further in September


China annual inflation rate eased to 1.6 percent in September of 2014, down further from 2.0 percent in the previous month and below market forecasts. The politically sensitive food prices increased 2.3 percent year-on-year, lower than a 3.0 percent rise in August while non-food prices grew 1.3 percent, softening from a 1.5 percent increase a month ago.

Among food prices, the highest increases came from fresh fruits (+16.7 percent in September from +21.2 percent in August) and egg (+12.9 percent from +18.7 percent). Prices were lower for pork (- 2.9 percent from -3.1 percent) and fresh vegetables (-9.4 percent from -6.9 percent ). 

For non-food categories, lower prices were seen for clothing (+2.4 percent from +2.6 percent), health care and personal products (+1.2 percent from +1.4 percent), housing (+1.6 percent from +1.9 percent) and transport and communication (-0.3 percent from +0.2 percent). Prices were stable for household equipment (+1.1 percent) and entertainment and culture ( +1.9 percent).
The government has set inflation target for 2014 at around 3.5 percent.  

Month-over-month, consumer prices accelerated to 0.5 percent compared to a 0.2 percent increase in the preceding month. 

In September of 2014, producer prices index -- a gauge of factory-gate prices-- fell 1.8 annually, worsening from 1.2 percent drop in August

China Inflation Slows Further in September


National Bureau of Statistics l Rida l rida@tradingeconomics.com
10/15/2014 3:16:53 AM