China Inflation Rate Steady at 2.3% in March


Consumer prices in China rose 2.3 percent year-on-year in March of 2016, the same pace as in February and below market consensus of a 2.5 percent increase. The politically sensitive food prices increased by 7.6 percent while non-food cost rose at a slower 1.0 percent. Cost of consumer goods gained 2.5 percent and those of services advanced 1.9 percent.

Among food, upward prices pressure came from: fresh vegetables (+35.8 percent in March from +30.6 percent in February), meat and poultry (+16.5 percent from +15.1 percent) and tobacco (+6.4 percent from +6.3 percent). Prices of liquid milk also rose 0.1 percent, unchanged from the preceding month. Prices of pork also rose by 28.4 percent, following a 25.4 percent increase in the previous month. In contrast, downward pressure came from cost of: egg (-5.8 percent from -3.4 percent) and fresh fruits (-10.2 percent from -7.9 percent). 

For non-food categories, upward prices pressure came from: clothing (+1.5 percent from +1.6 percent); rent, fuel & utilities (+1.3 percent from +1.3 percent), household equipment supplies and services (+0.4 percent from +0.3 percent); education, culture and entertainment (+1.2 percent from +0.9 percent),  healthcare (+3.1 percent from +2.8 percent) and other goods and services (+1.7 percent from +0.4 percent). In contrast, downward prices pressures came from transport and communications (-2.6 percent from -1.6 percent).

On a monthly basis, consumer prices dropped by 0.4 percent, as compared to a 1.6 percent increase in the preceding month. It is the first decline since October 2015.

The producer price index fell by 4.3 percent in March, compared to a 4.9 percent drop in the previous month. It is the slowest fall since January 2015. The index has been in a negative territory since March 2012.

China Inflation Rate Steady at 2.3% in March


Statistics China l Rida Husna | rida@tradingeconomics.com
4/11/2016 3:12:22 AM