China Inflation

China

China: Inflation rebounds in August

September 9, 2012

In August, consumer prices increased 2.0% over the same month last year, which was above the 1.8% rise registered in July, a figure that had marked the lowest reading since January 2010. In addition, the August print, which broke a declining trend in place since April, came in line with market expectations. Despite the increase, annual average inflation eased from 4.0% in July to 3.6% in August. The pick-up in prices was mainly caused by higher food inflation, which rose from 2.4% in July to 3.4% in August. The producer price index, in contrast, fell 3.5% over the same month last year in August, following the 2.9% drop observed in July. The reading represents the lowest rate recorded since October 2009. As a result, annual average producer price inflation slowed further, falling from 1.4% in July to 0.5% in August.


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China Inflation Chart


China Inflation August 2012

Note: Year-on-year and annual average variation of consumer price index in %.
Source: National Bureau of Statistics of China (NBS).


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