China: Inflation increases in August
September 8, 2017
In August, consumer prices rose 0.4% from the previous month, up from July’s 0.1% increase. The reading mainly reflected higher prices for food, tobacco and liquor. Prices of fresh vegetables, part of that sub-component, notably rose by 8.5% compared to July. On the other hand, prices for clothing, and education, culture and recreation fell in August from July.
Inflation rose from July’s 1.4% to 1.8% in August, overshooting the 1.6% market analysts had expected. As with the month-on-month increase in consumer prices, the rise in the price of fresh vegetables drove the inflation reading for August. Annual average inflation, meanwhile, rose from July’s 1.6% to 1.7% in August.
Producer inflation came in at 6.3% in August (July: 5.5%), overshooting market analysts’ expectations of 5.6%. Annual average producer inflation rose from July’s 4.5% to 5.1% in August, marking the highest reading since January 2012.
Author: Edward Gardner, Economist