China: Inflation softens in May on lower prices for fresh food
June 9, 2016
In May, consumer prices were down 0.5% over the previous month, which followed the 0.2% decrease tallied in April. The reading mainly reflected much lower prices for food, tobacco and alcohol, particularly for fresh vegetables.
Inflation came in at 2.0% in May. The print was below the 2.3% recorded in the previous three months and undershot the 2.2% that market analysts had expected. Despite May’s moderation, annual average growth in consumer prices inched up from 1.7% in April to 1.8%.
Meanwhile, the producer price index fell 2.8% in May over the same month last year, which represented an 18-month high. The print was above both April’s 3.4% decline and the 3.2% drop that market analysts had anticipated. The annual average variation of the producer price index edged up from April’s minus 5.2% to minus 5.0%.