Daily Management Review

Inflation in China jumps in August


China's consumer price index (CPI) - a key indicator of inflation - rose by 0.8% year on year in August, which was slightly below expectations of analysts, according to data released Thursday by China's State Bureau of Statistics.

Experts had forecast a 1.0% increase in the index at the level of the previous month. CPI growth for the first eight months of 2021 compared to the same period last year was 0.6%.

Urban CPI rose 1.0% in August, while rural CPI rose 0.3%. Food prices fell 4.1% in August, non-food prices rose 1.9%, consumer goods rose 0.3%, and services rose 1.5%.

In this case, compared with the previous month, the inflation rate increased by 0.1%. Prices of food products rose by 0.8% compared to July, while prices of non-food products dropped by 0.1%. Consumer goods rose by 0.2%, services remained at the level of July.

Prices of fresh fruit in August rose by 5.0% in annual terms, fresh vegetables and herbs fell by 1.5%, dairy products rose by 1.8%, eggs - by 13.9%, water products - by 11.7%, while meat prices fell by 27.1%, pork prices fell by 44.9%. Alcohol rose in price by 2.4%.

Meanwhile, the producer price index (PPI) rose 9.5% year-over-year in August from 9.0% a month earlier, falling short of analysts' forecasts that the figure would remain at July levels.

At the end of 2020, inflation in China was 2.5%, although the authorities had expected growth of 3.5%. According to the official forecast, CPI will be about 3% in 2021.

source: scmp.com