China Inflation


Inflation remains low in September

In September, consumer prices increased 1.9% over the same month last year, which was a notch below the 2.0% rise registered in August, but still in line with market expectations. The softer increase was mainly due to a slowdown in food price inflation, from 3.4% in August to 2.5%. As a result of the monthly reading, inflation resumed the downward trend in place since April, with annual average inflation easing further from 3.6% in August to 3.3% in September. The producer price index fell 3.6% over the same month last year in September, following the 3.5% drop observed in August. The reading represents the lowest rate recorded since October 2009. As a result, annual average producer price inflation slowed further, falling from plus 0.5% in August to minus 0.4% in September.

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China Inflation Chart

China Inflation September 2012

Note: Year-on-year and annual average variation of consumer price index in %.
Source: National Bureau of Statistics of China (NBS).

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