Inflation in China accelerated sharply last month as a resurgence of Covid sent several regions into lockdown and disrupted food supply chains, official figures showed on Wednesday.
In April, the consumer price index rose by 2.1% over one year against 1.5% a month earlier, announced the National Bureau of Statistics (BNS).
Analysts polled by the financial agency Bloomberg anticipated an acceleration, but to a lesser extent (1.9%).
This is for inflation in China its fastest pace since November 2021. Over one month, prices rose by 0.4%.
The Covid has hit China in recent weeks like never before, since the initial wave appeared in the country at the end of 2019. Tens of millions of Chinese find themselves confined to their homes, leading to supply difficulties and a surge in the prices of certain products.
As a result, the prices of fresh vegetables rose last month by 24% year on year, after 17.2% in March.
“Panic buying (as confinement approaches) has also pushed prices up,” notes economist Zhiwei Zhang, from Pinpoint Asset Management.
The nearly two-month lockdown in northeast China’s breadbasket has also delayed spring sowing, which could lead to shortages and weigh on prices this year, a note warned. Nomura Bank.
Especially since world food prices have soared since the Russian invasion of Ukraine at the end of February.
Considered the breadbasket of Europe, the country exports barley, sunflower oil and especially corn to China.
In terms of producer prices, inflation eased last month, with an increase of 8% over one year – against 8.3% in March.
This is its weakest pace in a year.
Analysts expected a more pronounced slowdown (7.8%).
Despite the rise in world prices for energy and raw materials linked to strong demand, supplies in China have been able to maintain themselves, allowing prices to be relatively ‘stable’, the SNB said.
/ATS