China's Inflation Rate Down to 1.8% in July

In July, the consumer price index (CPI) went up by 1.8 percent year-on-year. The prices grew by 1.9 percent in cities and 1.5 percent in rural areas. The food prices went up by 2.4 percent, while the non-food prices increased by 1.5 percent. The prices of consumer goods went up by 1.7 percent and the prices of services grew by 2.0 percent., National Bureau of Statistics of China 8/9/2012 9:35:57 AM

In July, the month-on-month change of consumer prices was up by 0.1 percent, prices in cities went up 0.1 percent, and rural areas remained at the same level (the amount of change was 0). The food prices dropped 0.1 percent, the non-food prices increased 0.2 percent. The prices of consumer goods decreased 0.1 percent, and the prices of services increased 0.6 percent.

In July, food prices went up by 2.4 percent year-on-year, affecting nearly 0.78 percentage points increase in the overall price level. Of which, the biggest increase was recorded for prices of fresh vegetables (8%) aquatic products (6.7%) and fresh fruits (8.7%).

Prices for tobacco and liquor went up by 3.1 percent year-on-year. Prices for clothing rose by 3.3 percent year-on-year. Prices for household facilities, articles and maintenance services went up by 1.9 percent year-on-year. Prices for health care and personal articles grew by 1.8 percent year-on-year. Prices for recreation, education, culture articles and services grew by 0.4 percent year-on-year.Prices for residence went up by 2.1 percent year-on-year. Prices for transportation and communication dropped 0.9 percent year-on-year.

According to estimation, in the 1.8 percent growth in July, the carryover effect of last year’s prices rising accounted for 0.9 percentage points, while new prices rising factors in this year accounted for 0.9 percentage points.