logo
Share SHARE
FONT-SIZE Plus   Neg

China's Inflation Accelerates In October

China-CPI-PPI-110917-lt.jpg

China's inflation climbed at the fastest pace in nine months in October and producer price inflation exceeded expectations as measures taken to curb pollution raised commodity prices.

Inflation rose to 1.9 percent in October from 1.6 percent in September, data from the National Bureau of Statistics showed Thursday.

Economists had forecast the rate to climb moderately to 1.8 percent. This was the highest rate since January, when inflation was 2.5 percent.

Nonetheless, inflation was well below the government's full year target of around 3 percent.

Data showed that food prices dropped 0.4 percent but slower than September's 1.4 percent decrease. At the same time, non-food inflation held steady at 2.4 percent.

On a monthly basis, consumer prices edged up 0.1 percent, following September's 0.5 percent increase.

Another report from NBS revealed that producer price inflation held steady at 6.9 percent in October, while it was forecast to ease to 6.6 percent. Monthly inflation slowed to 0.7 percent from 1 percent a month ago.

Price pressures may remain strong for a while longer as the anti-pollution campaign keeps commodity prices elevated and this feeds through into core inflation, Julian Evans-Pritchard, an economist at Capital Economics, said.

But with the economy likely to slow in the coming quarters and commodity prices set for an eventual correction, price pressures should start to ease before they trigger a policy response, the economist added.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Economic News

What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.

comments powered by Disqus
Follow RTT