MNI BRIEF: China's Aug CPI Falls More Than Expected
China’s Consumer Price Index fell 0.4% y/y in August from July's 0.0%, marking the fastest fall since February and missing expectations for a 0.2% drop, mainly due to lower-than-seasonal-level food price increases and the higher comparison base for the same period last year, according to data from the National Bureau of Statistics released Wednesday.
On a monthly basis, CPI rose 0.0%, edging down from July's 0.4% growth. Core CPI, which excludes food and energy, rose 0.9% y/y, expanding for the fourth consecutive month from July's 0.8% rise.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| Aug | Jul | Aug | Jul | |
| Pork | -0.5% | 0.9% | -16.1% | -9.5% |
| Vegetables | 8.5% | 1.3% | -15.2% | -7.6% |
| Gold Jewelry | / | / | 36.7% | 37.1% |
| Home Appliances | 1.1% | 2.2% | 4.6% | 2.8% |
China’s Producer Price Index fell 2.9% y/y in August, narrowing from July's 3.6% drop, marking the 35th straight month of decline, in line with market expectations of a 2.9% fall.
On a monthly basis, PPI rose 0.0%, improving from July's 0.2% fall and ending its eight-month downward trend, as prices in the coal, steel and glass sectors reversed falling as supply and demand rebalanced.
