China Inflation Rate at 7-Month High of 1.8% in August

China's consumer prices rose 1.8 percent year-on-year in August of 2017, following a 1.4 percent rise in July while market expected a 1.6 percent gain. It was the highest inflation rate since January, as cost of non-food rose at a faster pace and cost of food fell much less than in a month earlier.
Statistics China l Rida Husna | 9/10/2017 5:36:35 AM
In August, the politically sensitive food prices declined by 0.2 percent (from -1.1 percent in the prior month) while non-food cost rose 2.3 percent (from 2.0 percent). Cost of consumer goods went up 1.0 percent (from 0.5 percent) and those of services increased by 3.1 percent (from 2.9 percent). 

Among food, prices decreased for: pork (-13.5 percent from -15.5 percent) and and tobacco (-0.1 percent from -0.2 percent).  In contrast, prices rose for: eggs (4.3 percent from -4.9 percent), milk (0.4 percent from 0.3 percent) and fresh vegetables (9.7 percent from 9.1 percent). Cost was flat for fresh fruits (from 1.7 percent), 

For non-food categories, upward prices presssure came from most categories: rent, fuel & utilities (2.7 percent from 2.5 percent); clothing  (1.3 percent from 1.4 percent; household goods and services (1.3 percent from 1.1 percent); education, culture & recreation (2.5 percent); healthcare (5.9 percent from 5.5 percent) and other goods and services (1.4 percent from 1.3 percent). In addition, cost of transport and communication rebounded (0.7 percent from -0.2 percent).

On a monthly basis, consumer prices rose 0.4 percent, after gaining 0.1 percent in a month earlier and slightly above estimates a 0.3 percent rise. It was also the highest monthly figure since January.

The producer price index increased by 6.3 percent from a year earlier, compared to a 5.5 percent rise in the previous three months and above estimates of a 5.6 percent gain. It was the twelfth straight month of increase in producer inflation and the highest since April. Prices increased more than in a month earlier for means of production (8.3 percent from 7.3 percent, namely extraction: 18.2 percent, raw materials: 11.0 percent and processing: 6.4 percent). Also, cost of consumer goods went up slightly faster (0.6 percent from 0.5 percent, namely food production: 0.7 percent, clothing: 1.4 percent and daily use goods: 0.8 percent). Meanwhile, prices of consumer durable goods were unchanged, the same as in July. On a monthly basis, producer prices rose 0.9 percent and marking the second consecutive month of rise.

China Inflation Rate at 7-Month High of 1.8% in August