- Consumer Price Index (CPI) rose 0.6% year-on-year in August, the highest in six months.
- Food prices jumped by 2.8%, mainly due to floods and heatwaves affecting agriculture.
- Core inflation reached 0.3%, its lowest in over three years, raising concerns about deflation.
Beijing, 9 September (FinanceFlashNews) – China’s consumer inflation increased at its fastest pace in six months in August, driven primarily by higher food costs due to weather disruptions, rather than a broader recovery in domestic demand. This was reported by the National Bureau of Statistics, with data published by Reuters on Monday.
The Consumer Price Index (CPI) rose 0.6% in August compared to the same month last year, up from 0.5% in July. The inflationary uptick was mainly attributed to floods and extreme heat, which pushed up the prices of agricultural products during the summer, according to the statistics bureau.
Amid ongoing concerns over potential deflation, pressure is mounting on the government in Beijing to implement further stimulus measures. The country continues to grapple with a real estate crisis, rising unemployment, and growing tensions in international trade.
In August, food prices surged 2.8% year-on-year, while non-food inflation was reported at 0.2%. The country’s core inflation (excluding food and fuel prices) stood at 0.3%, marking its lowest level in nearly three and a half years.
Keywords: China inflation, consumer prices, food costs, economic stimulus, core inflation
