China: Inflation accelerates in May following April's 18-month low
June 9, 2014
In May, consumer prices rose 0.1% over the previous month, which contrasted the 0.3% decrease tallied in April. The monthly increase mainly reflected higher prices for clothing and food.
Annual inflation rose from 1.8% in April—which represented the lowest rate since October 2012—to 2.5% in May. The print overshot the 2.4% that market analysts had expected. As a result, the trend moved upward, with annual average inflation inching up from the previous month’s 2.5% to 2.6% in May.
Meanwhile, the producer price index fell 1.4% over the same month last year in May (April: -2.0% year-on-year), which marked the highest level in five months. In addition, the print overshot the 1.5% drop that market analysts had expected. As a result, the annual average variation of the producer price index inched up from minus 1.9% in April to minus 1.8% in May, which marked the highest rate since December 2012.