Inflation in China remained moderate in August over a year, according to official data released on Friday, thanks to a decline in food prices despite a heat wave in the country.
Unlike many other countries, particularly in Europe and the United States, consumer prices have not exploded in recent months in the Asian country.
In August, the consumer price index (CPI) was up 2.5% year on year, less than expected and against 2.7% the previous month, announced the National Bureau of statistics (SNB).
Analysts polled by Bloomberg had on the contrary expected an acceleration in the rise (+2.8%).
The authorities “have worked hard to overcome the repercussions of the epidemic and the extreme weather conditions,” said Dong Lijuan, a statistician with the BNS, in a statement.
Covid-19 outbreaks have led to lockdowns and supply chain disruptions. A heat wave of an unprecedented scale for several decades also disrupted agricultural production.
However, they did not lead to major increases in food prices.
The pork is flaming
On the other hand, pork, the most consumed in China, experienced a surge (+22.4%), ‘due to a weak basis of comparison’ with last year, underlines the BNS.
A further drop in fuel prices in August also explains the slowdown in the consumer price index.
‘We believe that inflation (…) will remain below the 3% ceiling’ this year, estimates in a note the firm Capital Economics.
“Inflation could go up if the epidemic situation improves and increases demand, but it will probably be offset by a drop in inflation for fuels and food”, underlines the cabinet.
As for the producer price index (PPI), which measures the prices of goods leaving factories, inflation fell sharply last month, with an increase of 2.3% over one year. — compared to 4.2% in July.
This level, the lowest for a year and a half, thwarts the forecasts of analysts polled by Bloomberg (+3.2%).
The SNB explains this trend by falling commodity prices in international markets, including crude oil and non-ferrous metals, as well as weak demand in some industries in China.
/ATS