China Inflation May 2017


China: Inflation continues to rise in May

June 9, 2017

In May, Chinese consumer prices fell 0.1% from the previous month, contrasting April’s 0.1% increase. The reading mainly reflected a sharp decrease in prices for food, tobacco and liquors and transport and communications.

Inflation rose from April’s 1.2% to 1.5% in May, in line with market expectations. Annual average inflation was stable at April’s 1.7% in May.

Meanwhile, producer inflation declined from April’s 6.4% to 5.5% in May, the lowest print in five months and below market expectations of 5.7%. The annual average variation of the producer price index rose from April’s 2.6% to 3.3% in May, the highest reading since April 2012.

FocusEconomics Consensus Forecast participants expect that consumer inflation will average 2.1% in 2017, which is down 0.1 percentage points from last month’s estimate. In 2018, the panel sees consumer inflation stable at 2.3%. Meanwhile, the panel expects producer inflation to be 6.4% in 2017, which is up 0.7 percentage points from last month’s projection. In 2018, panelists see producer inflation at 2.2%.

Author: Ricard Torné, Lead Economist

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China Inflation Chart

China Inflation May 2017

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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