Econintersect: The Consumer Price Index for China jumped up to 2.4% year-over-year in April 2013, from 2.1% in March. The reading was lower than the 3.2% reading for February and 2.6% in December, but otherwise higher than any other reading since a 3.0% print in June 2012. The biggest factor in the CPI was food, with a boost from high vegetables prices. With food costs excluded CPI was up only 1.6% from a year ago.
Year-over-year deflation in the PPI (Producer Price Index) continued for the 20th consecutive month. PPI was down 2.6% year-over-year. March had seen a reading of -1.9%.
The chart below shows the rapid decline in CPI inflation rate for China over the past two years. The April reading of 2.4 has not yet been added to the graph.
The decline in PPI has been even steeper. Again the April 2013 data point has not yet been added. The value for April is 96.7, very close to the cycle low seen last August and September.
Sources:
- China Inflation Quickens on Higher Food Costs (Reuters, CNBC, 08 May 2013)
- China counts cost of soaring vegetable prices (Simon Rabinovitch, Financial Times, 09 May 2013)
- China – National Statistics (Trading Economics, 09 May 2013)
- China: Inflation Growth Drops (GEI News, 09 April 2013)
