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