China: Inflation slows in August
September 11, 2014
In August, consumer prices rose 0.2% over the previous month, which followed the 0.1% increase recorded in July. The monthly increase mainly reflected higher prices for food, residence and household facilities.
Annual inflation fell from July’s 2.3% to 2.0% in August, which undershot the 2.2% that market analysts had expected. Nevertheless, the trend remained stable in August, with annual average inflation coming in at the previous month’s 2.5%.
Meanwhile, the producer price index fell 1.2% in August over the same month last year (July: -0.9% year-on-year), which marked the lowest rate in three months. Moreover, the print exceeded the 1.1% decline that market analysts had expected. As a result, the annual average variation of the producer price index stabilized in August, remaining at the previous month’s minus 1.5%.