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China Inflation May 2018

China: Inflation stable in May

Consumer prices dropped 0.2% from the prior month in May, falling by the same margin as in April. The decrease was driven by lower prices for food, tobacco and liquors, particularly fresh vegetables and fruit.

Inflation came in at 1.8% in May, unchanged from April’s print and in line with market expectations. Similarly, annual average inflation stabilized at April’s 1.8% in May.

Producer price inflation accelerated for the second consecutive month and rose to 4.1% in May from 3.4% in April, outpacing market analysts’ expectations of 3.9%. The jump was mainly due to a base effect, but higher commodity prices also contributed to the rise.

China Inflation Forecast

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