China Inflation Rate at 3-Month High of 1.9% in September

Consumer prices in China rose 1.9 percent year-on-year in September of 2016, compared to a 1.3 percent rise in August while market expected a 1.6 percent increase. It was the highest inflation rate since June as the politically sensitive food prices increased by 3.2 percent while non-food cost rose at a slower 1.6 percent. Cost of consumer goods gained 1.7 percent and those of services advanced 2.4 percent.
Statistics China l Rida Husna | 10/14/2016 2:26:00 AM
Among food, prices rose for: fresh vegetables (+7.5 percent from -3.9 percent in August) and fresh fruits (+6.7 percent from -0.6 percent). Prices of pork also went up by 5.8 percent, slowing from a 6.4 percent rise in a month earlier. In contrast, cost fell for: eggs (-4.6 percent from -7.4 percent), milk (-0.4 percent from -0.6 percent) and tobaco (-0.1 percent from -0.1 percent)

For non-food categories, cost rose for: clothing (+1.2 percent from +1.3 percent); rent, fuel & utilities (+1.5 percent from +1.5 percent), household equipment supplies and services (+0.3 percent from +0.4 percent), education, culture and entertainment (+2.0 percent from +1.3 percent), healthcare (+4.3 percent from +4.3 percent) and other goods and services (4.4 percent from +4.5 percent). In contrast, downward prices pressure came from transport and communications (-0.4 percent from -1.2 percent).

For 2016, the government sets inflation target at around 3 percent.

On a monthly basis, consumer prices rose 0.7 percent, after gaining 0.1 percent in a month earlier and above market consensus of a 0.3 percent growth. It was the highest figure since February.

The producer prices index unexpectedly rose 0.1 percent year-on-year in September, following a 0.8 percent drop in the preceding month while market expected a 0.3 percent decline. It was the first increase since January 2012.

China Inflation Rate at 3-Month High of 1.9% in September