Plus   Neg

China's Inflation Accelerates; PPI Returns To Positive Territory


China's inflation accelerated more-than-expected in September and producer prices increased for the first time since 2012 on higher commodity prices.

Inflation rose to 1.9 percent in September from 1.3 percent in August, the National Bureau of Statistics reported Friday. Inflation was forecast to climb to 1.6 percent.

The figure continues to remain below the government's full-year target of 3 percent.

Food prices advanced 3.2 percent and non-food prices climbed 1.6 percent in September.

Consumer prices gained 0.7 percent from August, when they rose 0.1 percent. This was the third consecutive increase.

Julian Evans-Pritchard at Capital Economics expects consumer price inflation to remain near current levels over the course of the next year or so.

The upshot is that inflation is unlikely to become a major concern for policymakers this year, allowing them to focus on more pressing issues such as financial stability and structural reform, the economist added.

Producer price inflation returned to positive zone for the first time in more than four years.

Producer prices edged up 0.1 percent in September in contrast to a 0.8 percent fall in the previous month. Prices were expected to fall 0.3 percent.

Producer prices will recover further given a more flattering base for comparison from the drop in commodity prices late last year, Evans-Pritchard at Capital Economics said.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT