Econintersect: The Chinese CPI (Consumer Price Index) rose 1.7% in October year-over-year, according to an announcement from the National Bureau of Statistics in Beijing. The median estimate of analysts surveyed by Bloomberg News which had been for a repeat of the 1.9 % gain for September. Producer prices (PPI) declined 2.8% from a year earlier after a 3.6% drop in September. The consumer price increases were driven entirely by urban goods (+1.8%). Rural prices actually delined (-1.5%).
The following graph from Bloomberg shows that October produced the first increase in year-over-year rate of decline in the past year. Not shown on the graph is the 7.5% peak in PPI growth in July 2011.
The last time PPI grew year-over-year was January 2012 (0.7%). The most recent peak in PPI was 7.5% in July 2011.
The following graph shows the one year history for CPI, which has declined from a high in July 2011 of 6.5% year-over-year growth.
- China’s Inflation Unexpectedly Slows as Food Prices Ease (Blommberg News, 08 November 2012)
- Chinese CPI hits 33-month low (Staff Reporter, Business Spectator, 09 Novemebr 2012)
- China: Deflation and Disinflation Continue (GEI News, 15 October 2012)