China Inflation Rate Eases Further in October


China's annual inflation rate was recorded at 1.3 percent in October of 2015, down from 1.6 percent in the previous month and below market forecasts. The politically sensitive food prices increased by 1.9 percent while non-food cost rose at a slower 0.9 percent.

Among food, upward price pressure came from: fresh vegetables (+4.7 percent in October from +10.4 percent in September) and meat and poultry (+7.2 percent from +8.2 percent). Prices of pork also rose by 15.8 percent, following a 17.4 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-13.8 percent from -10.2 percent), fresh fruits (-9.1 percent from -10.7 percent) and liquid milk and dairy products (-1.0 percent from -0.9 percent).

For non-food categories, upward price pressure came from: tobacco and liquor (+3.8 percent from +3.8 percent); clothing (+2.4 percent from +2.9 percent); household equipment and maintenance service (+0.8 percent from +1.0 percent); health care and personal (+2.2 percent from +2.1 percent); entertainment and educational products (+1.1 percent from +1.4 percent) and housing price (+0.6 percent from +0.8 percent). In contrast, prices declined for transport and communication (-1.9 percent from -2.1 percent).

On a monthly basis, consumer prices fell 0.3 percent, following a 0.1 percent increase in September.

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

China Inflation Rate Eases Further in October


National Bureau of Statistics l Rida Husna | rida@tradingeconomics.com
11/10/2015 10:50:37 AM