China Inflation July 2020


China: Inflation increases in July due to higher food prices

August 10, 2020

Consumer prices rose 0.6% over the previous month in July, contrasting June’s 0.1 % decrease. The increase reflected much higher prices for the food, tobacco and alcohol category.

Inflation rose from June’s 2.5% to 2.7% in July. The print was slightly above the 2.6% that market analysts had expected. Annual average inflation stabilized at June’s 3.7% in July.

Annual producer prices (PPI), meanwhile, fell 2.4% year-on-year in July. The print was above the 3.0% drop in June and the 2.5% decrease that market analysts had expected.

FocusEconomics panelists forecast that inflation will average 2.8% in 2020, which is down 0.2 percentage points from last month’s estimate, and 2.1% in 2021. Meanwhile, the panel expects producer prices to decline 2.2% in 2020, which is unchanged from last month’s projection, before rebounding to a 0.6% rise in 2021.

Author: Ricard Torné, Head of Data Analysis

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China Inflation Chart

China Inflation July 20 20

Note: Annual and monthly variation of consumer price index and annual variation of producer price index in %.
Source: National Bureau of Statistics of China (NBS).

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