China: Inflation hits six-month high in October
November 9, 2016
In October, consumer prices fell 0.1% from the previous month, contrasting September’s 0.7% increase. The reading mainly reflected a sharp fall in prices for food, particularly fresh vegetables, tobacco and liquors.
Inflation rose from September’s 1.9% to 2.1% in October, which marked a six-month high. The print was in line with what market analysts had expected. Annual average growth in consumer prices inched up from September’s 1.8% to 1.9%. Nevertheless, inflation is well below the government’s 3.0% target for the year.
Meanwhile, the producer price index grew for the second time in nearly six years in October, expanding 1.2% annually. The print overshot both September’s 0.1% increase and the 0.9% expansion that the markets had expected. The annual average variation of the producer price index rose from September’s minus 3.6% to minus 3.0% in October, which represented the highest reading since May 2016.
Author: Luis Lopez Vivas, Economist