Inflation in China
China - Inflation (end of period)
Inflation drops in March as coronavirus hits demand and low oil prices bite
Consumer prices fell 1.2% over the previous month in March, contrasting February’s 0.8 % increase. The print mostly reflected lower food prices, especially for fresh vegetables and meat, as well as a decline in prices for transportation and communication, mostly reflecting a drop in oil prices.
Inflation declined from 5.2% in February to 4.3% in March. Moreover, the print was below the 4.9% that market analysts had expected and was the lowest reading in five months. Annual average inflation rose from 3.5% in February to 3.7% in March, the highest in almost eight years, since August 2012.
Annual producer prices (PPI), meanwhile, fell 1.5% year-on-year in March. The print exceeded the 0.4% fall in February and was sharper than the 1.1% decrease that market analysts had expected. The decline mostly reflected a sharp drop in prices for extraction of petroleum and natural gas.
FocusEconomics panelists forecast that inflation will average 3.3% in 2020, which is up 0.1 percentage points from last month’s estimate, and 2.3% in 2021. Meanwhile, the panel expects producer prices to fall by 0.5% in 2020, which is slightly down from last month’s 0% projection, before rebounding to a 1.2% rise in 2021.
China - Inflation (eop) Data
|Inflation Rate (CPI, annual variation in %, eop)||1.5||1.6||2.1||1.8||1.9|
5 years of economic forecasts for more than 30 economic indicators.
China Inflation (eop) Chart
Source: National Bureau of Statistics of China and FocusEconomics calculations.
|Bond Yield||3.17||-0.40 %||Dec 31|
|Exchange Rate||6.96||-0.19 %||Jan 01|
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May 25, 2020
China’s top leadership decided to scrap its traditional annual growth target for this year, the first time since it was first established in 1994, highlighting the severity of the economic crisis facing the country.
May 18, 2020
House prices in 70 large- and medium-sized cities increased 0.5% in April in month-on-month terms according to a weighted average index calculated by Refinitiv from data issued by the National Bureau of Statistics (NBS).
May 15, 2020
Nominal urban fixed asset investment fell 10.3% in the first four months of the year compared to the same period in 2019.
May 15, 2020
Industrial output grew 3.9% compared to the same month a year earlier in April, which contrasted March's 1.1% decrease.
May 15, 2020
Retail sales fell 7.5% year-on-year in April (March: -15.8% yoy).