Consumer inflation in China recovers in Aug; PPI down by 3% YoY

On a month-on-month (MoM) basis, August’s CPI rose by 0.3 per cent, up from a 0.2 per cent rise in July.

The recovery was due to continued recovery in the consumer market and improvement in demand and supply, NBS statistician Dong Lijuan said.

The improvement was led by non-food prices, which rose by 0.5 per cent YoY after a flat reading in July.

The growth in core CPI, which excludes volatile food and energy prices and is deemed a better gauge of the supply-demand relationship in the economy, rose by 0.8 percent year-on-year in August.

Meanwhile, China's producer price index (PPI), which gauges factory-gate prices, was down by 3 per cent YoY in August after a 4.4 per cent annual contraction in July, NBS said. PPI rose by 0.2 per cent MoM in the month after a 0.2 per cent MoM dip in July. The average PPI in the first eight months this year went down by 3.2 per cent YoY.

ALCHEMPro News Desk (DS)