China: Inflation hits five-month high in January
February 18, 2016
In January, consumer prices were up 0.5% over the previous month, which matched the result tallied in the previous month. The reading mainly reflected much higher prices for food as a result of soaring prices for fresh vegetable ahead of the Chinese New Year.
Inflation rose from December’s 1.6% to 1.8% in January, which represented the highest reading since August 2015. The print slightly undershot the 1.9% that market analysts had expected. The trend picked-up in January, with annual average inflation inching up from last month’s 1.4% to 1.5%.
Meanwhile, the producer price index fell 5.3% in January over the same month last year, which was above December’s 5.9% decline. The print was better than the 5.4% drop that market analysts had expected. The annual average variation of the producer price index decreased from minus 5.2% in December to minus 5.3% in January, which represented the lowest value since December 2009.