MNI BRIEF: China January CPI Growth Slows To 3-Month Low
China’s Consumer Price Index rose 0.2% y/y in January, down from December's 0.8% growth to hit a three-month low, missing expectations for a 0.4% gain, according to data from the National Bureau of Statistics released Wednesday.
The slower growth was mainly due to a higher comparison base, as January of last year was the month of the Spring Festival, the NBS said, also citing fluctuations in international oil prices that led to a wider decline in energy prices. On a monthly basis, CPI rose 0.2%, the same as the previous 0.2% gain. Core CPI, which excludes food and energy, rose 0.3% m/m to hit a 6-month high.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| Jan | Dec | Jan | Dec | |
| Vegetables | -4.8% | 0.8% | 6.9% | 18.2% |
| Pork | 1.2% | -1.7% | -13.7% | -14.6% |
| Gold Jewelry | / | 5.6% | 77.4% | 68.5% |
| Fuel Cost | -1.2% | -1.1% | -10.4% | -8.2% |
China’s Producer Price Index fell 1.4% y/y in January, narrowing for the second month from December's 1.9% drop, marking the 40th straight month of decline. The figure outperformed the median forecast of -1.5%.
On a monthly basis, PPI rose for the fourth month by 0.4%, up from the previous 0.2% gain, as increased demand drives up prices in the computer, communication and other electronic equipment manufacturing, as well as Spring Festival-related gift and food processing.
