China Inflation February 2019


China: Inflation slows to an over one-year low in February

March 10, 2019

Consumer prices rose 1.0% from the previous month in February, following January’s 0.5% increase. The acceleration was primarily driven by higher prices for food, especially fresh vegetables, which fell in early February this year. However, this was partially the consequence of Chinese New Year holidays.

Inflation declined from January’s 1.7% to an over one-year low of 1.5% in February. The print matched the result that market analysts had expected. Annual average inflation fell from January’s 2.1% to 2.0% in February.

Producer price inflation, meanwhile, was unchanged at January’s 0.1% in February. The reading was below market analysts’ expectations of 0.2%. Declining producer price inflation is expected to impact industrial profit, which could weigh on job creation and investment.

FocusEconomics Consensus Forecast participants expect that consumer inflation will average 2.2% in 2019, which is unchanged from last month’s estimate. In 2020, the panel also sees consumer inflation at 2.2%. Meanwhile, the panel expects producer inflation to be 1.7% in 2019, which is down 0.4 percentage points from last month’s projection. In 2020, panelists also see producer inflation at 1.7%.


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China Inflation Chart

China Inflation February 2019 1

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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