China: Upward trend in inflation remains intact in February
March 10, 2016
In February, consumer prices were up 1.6% over the previous month, which was well above the 0.5% increase tallied in the previous month. The reading, which marked an eight-year high, mainly reflected much higher food prices due to the Chinese New Year festivities. Excluding food, prices went up a softer 0.3% on a monthly basis.
Inflation rose from January’s 1.8% to 2.3% in February, which represented the highest reading since July 2014. The print overshot the 1.9% that market analysts had expected. The trend continued to point upward in February, with annual average inflation inching up from last month’s 1.5% to 1.6%.
Meanwhile, the producer price index fell 4.9% in February over the same month last year, which was above January’s 5.3% decline. The print was in line with market expectations and represented an eight-month high. The annual average variation of the producer price index stabilized at January’s minus 5.3% in February, which still represented the lowest value since December 2009.