China Inflation Rate at 6-Month High of 2.1% in October

Consumer prices in China rose 2.1 percent year-on-year in October of 2016, compared to a 1.9 percent rise in September and in line with market expectations. It was the highest inflation rate since April, as the politically sensitive food prices increased by 3.7 percent while non-food cost rose at a slower 1.7 percent. Cost of consumer goods gained 1.9 percent and those of services advanced 2.5 percent.
Statistics China l Rida Husna | 11/9/2016 2:10:13 AM
Among food, prices rose for: fresh vegetables (+13.0 percent from +7.5 percent in September) and fresh fruits (+6.0 percent from +6.7 percent). Prices of pork also went up by 4.8 percent, slowing from a 5.8 percent rise in a month earlier. In contrast, cost fell for: eggs (-2.4 percent from -4.6 percent), milk (-0.2 percent from -0.4 percent) and tobaco (-0.1 percent from -0.1 percent).

For non-food categories, cost went up for: clothing (+1.3 percent from +1.2 percent); rent, fuel & utilities (+1.8 percent from +1.5 percent), household equipment supplies and services (+0.4 percent from +0.3 percent), education, culture and entertainment (+2.1 percent from +2.0 percent), healthcare (+4.8 percent from +4.3 percent) and other goods and services (+3.6 percent from +4.4 percent). In contrast, downward prices pressure came from transport and communications (-0.4 percent from -0.4 percent).

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

On a monthly basis, consumer prices fell 0.1 percent, after gaining 0.7 percent in a month earlier while market estimated a flat reading. It was the first decline since June.

The producer prices index rose 1.2 percent year-on-year in October, following a 0.1 percent increase in the preceding month and beating market consensus of a 0.8 percent gain. It was the second straight month of increase and the fastest since December 2011.

China Inflation Rate at 6-Month High of 2.1% in October