China: Inflation stabilizes in August
September 10, 2019
Consumer prices rose 0.7% from the previous month in August, following July’s 0.4% increase. The print mostly reflected higher prices for food, especially a surge in pork prices as the country is grappling with a shortage of pork supply amid a swine fever outbreak. Analysts estimate that China's pig herd could halve by the end of this year.
Inflation was stable at July’s 2.8% in August. The print was above market analysts’ expectations of 2.6%. Annual average inflation was unchanged at the previous month’s 2.8% in August.
Annual producer prices (PPI), meanwhile, fell 0.8% year-on-year, following July’s 0.3% decline and representing the steepest drop since August 2016. That said, the decrease was smaller than the 0.9% decline expected by market analysts.