China's annual inflation rate unexpectedly steadied at 4.5 percent in December 2019, the same as in the previous month and less than market expectations of 4.7 percent. Still, it remained the highest inflation rate since January 2012, as pork prices surged 97 percent on the back of a prolonged African swine fever epidemic. The government previously said it will use its reserves to provide sufficient pork supply to meet higher demand ahead of the Lunar New Year holidays later in January. Food inflation eased to 17.1 percent from 19.1 percent while non food cost rose at a faster 1.3 percent (1 percent). For full 2019, consumer inflation was at 2.9 percent, in line with the government target of 3 percent. On a monthly basis, consumer prices were flat in December, compared to market estimates of a 0.3 percent advance and following a 0.4 percent gain in November. Inflation Rate in China averaged 5.13 percent from 1986 until 2019, reaching an all time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999. source: National Bureau of Statistics of China
Inflation Rate in China is expected to be 2.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in China to stand at 2.00 in 12 months time. In the long-term, the China Inflation Rate is projected to trend around 1.90 percent in 2020, according to our econometric models.