China: Inflation slows to almost five-year low in September
October 15, 2014
In September, consumer prices rose 0.5% over the previous month, which followed the 0.2% increase recorded in August. The monthly increase mainly reflected higher prices for clothing, recreation, education and culture as well as for food.
Annual inflation fell from August’s 2.0% to 1.6% in September. The print undershot the 1.7% that market analysts had expected and represented the lowest rate since January 2010. Consequently, the trend now points downward, with annual average inflation declining from 2.5% in August to 2.3% in September.
Meanwhile, the producer price index fell 1.8% in September over the same month last year (August: -1.2% year-on-year), which marked the lowest rate in five months. Moreover, the print exceeded the 1.6% decline that market analysts had expected. As a result, the annual average variation of the producer price index inched down from minus 1.5% in August to minus 1.6% in September.