China Inflation Rate Eases in August
China annual inflation rate eased to 2.0 percent in August of 2014, down from 2.3 percent in the previous month and below market forecasts. The politically sensitive food prices increased 3.0 percent year-on-year, lower than a 3.6 percent rise in July while non-food prices grew 1.5 percent, softening from a 1.7 percent increase a month ago.
9/11/2014 5:07:05 AM
Among food prices, the highest increases came from fresh fruit (+21.2 percent in August of 2014 from +20.1 percent in July) and egg (+18.7 percent from +19.5 percent). Prices were lower for pork (- 3.1 percent from -3.6 percent) and fresh vegetables (-6.9 percent from -1.6 percent ).
For non-food categories, prices were stable for clothing (+2.6 percent from 2.6 percent), household equipment (+1.1 percent from +1.1 percent) and health care (+1.4 percent from +1.4 percent). Lower cost were recorded for transport and communication (+0.2 percent from +0.7 percent), entertainment and culture (+1.9 percent from +2.1 percent) and housing (+1.9 percent from 2.0 percent).
For 2014, the government has set inflation target at around 3.5 percent.
Month-over-month, consumer prices accelerated to 0.2 percent compared to a 0.1 percent increase in the preceding month.
Producer prices in August of 2014 fell 1.2 annually, worsening from 0.9 percent drop in July.