China's Inflation Rate Steady in October
China's annual inflation rate was recorded at 1.6 percent in October, unchanged from the previous month. The politically sensitive food prices accelerated to 2.5 percent while non-food cost rose at a slower 1.2 percent.
11/10/2014 9:19:28 AM
Among food prices, the highest increases came from egg (+16.4 percent in October from +12.9 percent increase in September) and fresh fruits (+15.2 percent from +16.7 percent). Cost of fresh vegetables (-7.2 percent from -9.4 percent) and pork (-3.1 percent from -2.9 percent) dropped further.
For non-food categories, prices were stable for clothing (+2.4 percent) and transportation and communication (-0.3 percent). Higher cost were seen for household equipment and maintenance services (+1.2 percent from +1.1 percent) and health care and personal products (+1.3 percent from +1.2 percent). Price decreases were reported for entertainment and educational products and services (+1.1 percent from +1.9 percent) and tourism (-2.3 percent in October from + 3.2 percent in September).
For 2014, the government has set inflation target at around 3.5 percent.
Month-on-month, consumer prices remained unchanged, compared to a 0.5 percent increase in the preceding month.
Producer prices index declined by 2.2 percent from a year earlier, compared with a 1.8 percent drop in September. The index has been in a negative territory since March of 2012.