China: Inflation stable in May
June 9, 2018
Consumer prices dropped 0.2% from the prior month in May, falling by the same margin as in April. The decrease was driven by lower prices for food, tobacco and liquors, particularly fresh vegetables and fruit.
Inflation came in at 1.8% in May, unchanged from April’s print and in line with market expectations. Similarly, annual average inflation stabilized at April’s 1.8% in May.
Producer price inflation accelerated for the second consecutive month and rose to 4.1% in May from 3.4% in April, outpacing market analysts’ expectations of 3.9%. The jump was mainly due to a base effect, but higher commodity prices also contributed to the rise.
China Inflation Forecast
FocusEconomics Consensus Forecast participants expect that consumer inflation will average 2.3% in 2018, which is unchanged from last month’s estimate. For 2019, the panel also sees consumer inflation at 2.3%. Meanwhile, the panel expects producer inflation of 3.2% in 2018, which is unchanged from last month’s projection. For 2019, panelists see producer inflation at 2.1%.
Author: Lindsey Ice, Economist