China's Inflation Rate Down to 1.7 Percent in October


In October, the consumer price index (CPI) went up by 1.7 percent year-on-year. The prices grew by 1.8 percent in cities and 1.5 percent in rural areas. The food prices went up by 1.8 percent, while the non-food prices increased by 1.7 percent. The prices of consumer goods went up by 1.5 percent and the prices of services grew by 2.3 percent. On average from January to October, the overall consumer prices were up by 2.7 percent over the same period of the previous year.

In October, food prices went up by 1.8 percent year-on-year, affecting nearly 0.57 percentage points increase in the overall price level. Of which, the prices of grain rose by 3.8 percent, meaning 0.11 percentage points growth in the overall price level; aquatic products, up by 4.7 percent, affecting nearly 0.11 percentage points increase in the overall price level; fresh fruits, up by 3.9 percent, affecting nearly 0.07 percentage points increase in the overall price level; grease, increased 3.9 percent, affecting nearly 0.05 percentage points increase in the overall price level; fresh vegetables increased 1.1 percent, affecting nearly 0.03 percentage points increase in the overall price level; meat, poultry and related products down by 4.7 percent, affecting nearly 0.37 percentage points decrease in the overall price level (price of pork was down by 15.8 percent, affecting nearly 0.60 percentage points decrease in the overall price level).
 
Prices for tobacco and liquor went up by 2.0 percent year-on-year, of which, that of liquor was up by 4.0 percent and tobacco was up by 0.5 percent. Prices for clothing rose by 2.7 percent year-on-year. The prices for clothes went up by 3.0 percent while the prices for shoes increased 1.7 percent. Prices for household facilities, articles and maintenance services went up by 1.5 percent year-on-year, of which, prices for household services and processing, maintenance services, up by 9.7 percent, and durable consumer goods remained at the same level. Prices for health care and personal articles grew by 1.8 percent year-on-year. Of which, prices for traditional Chinese herbal medicines and proprietary Chinese medicines, up by 2.2 percent, medical apparatus and supplies increased 1.7 percent, health care services, up by 1.0 percent, and western medicine went up by 0.5 percent. Prices for transportation and communication increased 0.1 percent year-on-year. Of which, prices for vehicles use and maintenance, up by 5.0 percent, fuels and parts for vehicles, up by 4.7 percent, inter-city traffic fares, up by 1.3 percent, communication facilities, down by 11.0 percent, transportation facilities dropped by 1.1 percent. Prices for recreation, education, culture articles and services grew by 1.1 percent year-on-year. Of which, education service, up by 2.6 percent, recreation and culture, up by 1.9 percent, touring and outing, up by 1.6 percent, durable consumer goods for recreational and cultural use and services, down by 4.9 percent. Prices for residence went up by 2.5 percent year-on-year. Of which, prices for water, electricity and fuel, up by 3.3 percent, house renting, up by 3.1 percent, building and building decoration materials rose by 0.3 percent.
 
According to estimation, in the 1.7 percent growth in October, the carryover effect of last year’s prices rising accounted for 0.1 percentage points, while new prices rising factors in this year accounted for 1.6 percentage points.


TradingEconomics.com, National Bureau of Statistics of China
11/9/2012 9:18:29 AM