China: Price pressures soften in September
October 15, 2020
Consumer prices rose 0.2% over the previous month in September, following August’s 0.4% increase. The increase mainly reflected higher prices for the clothing and footwear as well as for education.
Inflation fell from August’s 2.4% to 1.7% in September. The print undershot the 1.9% result that market analysts had expected. Annual average inflation inched down from August’s 3.7% to 3.6% in September.
Annual producer prices (PPI), meanwhile, fell 2.1% year-on-year in September. The print was below both the 2.0% drop in August and the 1.8% decrease that market analysts had expected.
Inflation is moderating due to a high base effect from last year when consumer prices were plagued by a surge in pork prices. Meanwhile, producer prices remain in negative territory mainly reflecting low prices for oil and other row materials.