The politically sensitive food inflation rose to 11.2 percent in September, the highest since October 2011, as pork prices soared 69.3 percent, the seventh straight month of increase, after a 46.7 percent gain in August. Also, cost rose faster for both edible oil (2.3 percent vs 1 percent) and eggs (8.2 percent vs 3.6 percent). Meantime, prices of fresh fruits slowed (7.7 percent vs 24 percent), while cost of fresh vegetables continued to fall (-11.8 percent vs -0.8 percent).
Non-food price inflation eased (1 percent vs 1.1 percent in August), amid a softer rise in cost of rent, fuel & utilities (0.7 percent vs 1 percent), household goods & services (0.6 percent vs 0.7 percent), healthcare (2.2 percent vs 2.3 percent), and education, culture & recreation (1.7 percent vs 2.1 percent). In addition, transport and communication prices dropped further (-2.9 percent vs -2.3 percent). On the other hand, inflation was unchanged for clothing (at 1.6 percent), while cost of other goods and services advanced at a faster pace (5.8 percent vs 4.7 percent).
Annual core inflation, which strips out volatile food and energy prices, was at 1.5 percent in September, the same as in August.
On a monthly basis, consumer prices increased by 0.9 percent in September, the most since February, following a 0.7 percent gain in August and higher than market estimates of 0.7 percent.
Meanwhile, China's producer price index fell 1.2 percent year-on-year in September, following a 0.8 percent decrease in the previous month and matching market expectations. It was the sharpest fall in producer prices since July 2016, as cost of means of production dropped further (-2 percent vs -1.3 percent in August), due to raw materials (-4.8 percent vs -3.5 percent), processing (-1.2 percent vs -0.8 percent), and extraction (0.6 percent vs 2.8 percent). Meanwhile, prices went up faster for consumer goods (1.1 percent vs 0.7 percent), of which food production (3.3 percent vs 2.6 percent), daily use goods (0.8 percent vs 0.6 percent), clothing (0.9 percent, the same as in August) and durable goods (-1.8 percent vs -2 percent). On a monthly basis, producer prices rose by 0.1 percent in September. Considering the first nine month of the year, producer prices were flat compared with the same period of 2018.