Daily Management Review

Inflation in China exceeds forecasts


According to data issued on Saturday by China's State Statistics Office, the consumer price index (CPI), a major gauge of inflation, increased 2.5 percent year over year in June 2022, slightly exceeding analysts' predictions.

Ted McGrath via flickr
Ted McGrath via flickr
In contrast to May's 2.1 percent CPI growth, experts forecasted 2.4 percent growth in June.

In June, the CPI increased 2.6 percent year over year in rural regions and 2.5 percent in urban areas. Consumer goods prices increased by 3.5 percent in June, consumer service prices - by 1.7 percent, non-food prices - by 2.5 percent, and food prices - by 2.9 percent.

As compared to May, food prices decreased by 1.6 percent, consumer goods - by 0.1 percent, non-food items - by 0.4 percent, and services - by 0.2 percent.

In June, the cost of fresh fruit increased by 19% on an annual basis, the cost of fresh vegetables and herbs increased by 3.7%, the cost of dairy products decreased by 0.9%, the cost of eggs increased by 6.5%, the cost of aquatic products increased by 3.3%, and the cost of meat decreased by 4.7% and pork increased by 6%. The cost of alcohol increased by 1.6 percent.

Price of health services increased by 0.7 percent in June compared to the same month last year, while costs for education, entertainment, and cultural activities grew by 2.1 percent, 8.5 percent, and 0.8 percent, respectively.

In contrast, the Producer Price Index (PPI) increased 6.1 percent year over year in June, up from 6.4 percent in May, below an estimate of 6 percent.

China's inflation rate at the end of 2021 was 0.9%, against authorities' expectations for rise of around 3%. The official forecast states that the CPI will be about 3% in 2022.

source: english.news.cn