China: Inflation hits a seven-month high in September
October 14, 2013
Consumer prices increased 3.1% over the same month last year in September, coming in above the 2.6% rise tallied in August and exceeding the 2.8% rise that markets had expected. The increase, which marked the highest level since February, mainly reflected higher prices for food - in particular for fresh vegetables - and for housing. The trend moved upward in September, with annual average inflation inching up from 2.3% in August to 2.4% in September.
Meanwhile, the producer price index fell 1.3% in September over the same month last year, which was up from the 1.6% drop tallied in July. September's decrease overshot the 1.4% decline that market analysts had expected and marked the highest level since April 2012.
The government expects that inflation will average 3.5% this year. FocusEconomics Consensus Forecast participants anticipate that inflation will average 2.6% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, the panel sees inflation rising to 3.2%, which is unchanged from last month's forecast.