China Inflation Rises Slightly; Producer Price Inflation Moderates
April 11 2017 - 9:20PM
RTTF2
China's inflation rose marginally on non-food prices in March,
while factory gate inflation moderated as commodity prices weakened
notably.
Inflation rose to 0.9 percent in March from 0.8 percent in
February, data published by the National Bureau of Statistics
showed Wednesday. Nonetheless, this was slightly slower than the
expected 1 percent.
The government targets around 3 percent inflation for the whole
year of 2017.
Consumer price inflation may regain some ground but should
remain below 2 percent, Julian Evans-Pritchard, a China economist
at Capital Economics, said. The upshot is that those anticipating a
further reflation in China are likely to be disappointed, he
added.
Food prices declined 4.4 percent versus a 4.3 percent fall in
February. Meanwhile, non-food prices advanced 2.3 percent after
rising 2.2 percent.
Month-on-month, consumer prices fell 0.3 percent following a 0.2
percent drop in February.
Another report from NBS showed that producer price inflation
eased to 7.6 percent in March from 7.8 percent a month ago.
Economists had forecast the annual rate to slow to 7.5 percent. The
7.8 percent increase seen in February was the fastest since
2008.
On a monthly basis, producer price inflation halved to 0.3
percent from 0.6 percent.
Producer price inflation is likely to drop back further in
months ahead as base effects become less favorable and economic
activity begins to cool on the back of a tighter policy stance, the
economist at Capital Economics, said.
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