Economic News Update

Chinese inflationary pressures intensified sharply last month

Chinese price pressures intensified in September with both consumer and producer price inflation topping expectations.

According to the NBS, consumer price inflation (CPI) grew by 1.9% from a year earlier, a result was well ahead of the 1.3% pace seen in August and forecasts for an acceleration to 1.6%.

It was the fastest annual pace since June. Over the month, CPI rose by 0.7%.

Breaking down the headline figure, the NBS reported that food inflation grew by 3.2% over the past year, up from 1.3% in August.

Pork prices, a staple of the Chinese diet, rose by 5.8% over the same period, a slight deceleration on the 6.4% pace reported previously.

That slowdown was more than offset by a huge 10.7% increase in vegetable prices in September, leaving them up 6.7% on the levels of a year earlier.

The NBS suggested that adverse weather conditions in Southern China over summer contributed to the surge in prices.

 

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