China Inflation April 2022


China: Consumer inflation comes in at highest level since November 2021 in April; producer inflation dips

May 11, 2022

Consumer prices increased 0.37% from the previous month in April, after March's flat result. The reading was primarily driven by increasing prices for food and transport. In particular, food prices were affected by logistics problems and stockpiling as a result of Covid-19 restrictions. In contrast, housing costs declined as the real estate sector was hit by weak demand.

Consumer inflation rose to 2.1% in April from March’s 1.5%. April's result was the highest inflation rate since November 2021 and beat market expectations of 1.8%. Annual average inflation rose to 1.3% in April (March: 1.2%). Lastly, producer price inflation fell to 8.0% in April, from the previous month's 8.3%, marking the lowest reading in one year.

Looking forward, consumer price inflation is expected to trend up somewhat but will likely stay mild nonetheless on limp domestic demand. Meanwhile, producer price inflation should gradually trend down on a base effect, given increasingly high producer price inflation readings as last year progressed, despite Covid-19-induced supply difficulties and an unfavorable international price environment.

FocusEconomics panelists forecast that consumer price inflation will average 2.2% in 2022, which is unchanged from last month’s estimate, and 2.3% in 2023. Producer price inflation is forecast to average 5.5% in 2022, which is up 0.4 percentage points from last month’s forecast, and 1.3% in 2023.


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China Inflation Chart

China Inflation April 2022

Note: Annual and monthly variation of consumer price index, and annual variation of producer price index, in %.
Source: National Bureau of Statistics of China (NBS).

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