JAKARTA (TheInsiderStories) – China Statistics shows the country’ inflation slowed to 1.7 percent year-on-year in January 2019 from 1.9 percent in the previous month. According to the data, this was the lowest inflation rate since January 2018, amid a marked slowdown in cost of food.
While on a monthly basis, the inflation went up 0.5 percent in January, compared to a flat reading in December and matching market estimates. It reached the highest monthly reading in four months.
Inflation rate in China averaged 5.19 percent from 1986 until 2019, reaching an all time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999.
The politically sensitive food inflation eased to a five-month low of 1.9 percent in January from 2.5 percent in the preceding month, as prices rose at a softer pace for: fresh vegetables (3.8 percent vs 4.2 percent in Dec), fresh fruit (2.7 percent vs 9.4 percent) and eggs (0.3 percent vs 0.7 percent); while cost continued to fall for both edible oil (-0.3 percent vs -0.3 percent) and pork (-3.2 percent vs -1.5 percent).
The economists says, its influenced by the cold weather and strong demand ahead of the Spring Festival lifted their prices. Travel demands during the festival and the winter vacation also pushed the prices of plane tickets, tour agency services and coach tickets higher.
The data show that cost of non-food rose 1.7 percent in January, the same as in a month earlier. Prices continued to increase for: clothing (1.6 percent vs 1.5 percent in Dec); rent, fuel & utilities (2.1 percent vs 2.2 percent); household goods and services (1.5 percent vs 1.4 percent); education, culture and recreation (2.9 percent vs 2.3 percent); healthcare (2.7 percent vs 2.5 percent); and other goods and services (2.3 percent vs 1.6 percent). At the same time, cost of transport and communication fell further (-1.3 percent vs 0.7 percent in Dec).
Based on the report, annual core inflation, which strips out volatile food and energy prices, edged up to 1.9 percent in January from 1.8 percent the previous month and marking the highest level in five months.
On a monthly basis, consumer prices index (CPI) went up 0.5 percent in January, compared to a flat reading in December and matching market estimates. It reached the highest monthly reading in four months.
Meantime, China’ CPI increased by 0.1 percent from a year earlier in January 2019, far slower than a 0.9 percent rise in the previous month and less than market expectations of 0.2 percent. It was the lowest producer inflation since September 2016, amid a slight decline in prices of means of production (-0.1 percent vs 1 percent in a month earlier), in particular raw materials (-1.6 percent vs 0.8 percent), processing (0.3 percent vs 0.8 percent) and extraction (1.2 percent vs 3.8 percent).
At the same time, consumer goods inflation edged lower to 0.6 percent from 0.7 percent, of which food production (0.8 percent vs 0.9 percent), clothing (1.6 percent vs 1.6 percent) and daily use goods (0.3 percent vs 0.4 percent).
Cost of consumer durable goods were flat, following a 0.2 percent rise in December. On a monthly basis, producer prices fell 0.6 percent in January, after a 1 percent drop in December and marking the third straight month of monthly decrease.
So, producer prices change in China averaged 1.30 percent from 1995 until 2019, reaching an all time high of 13.47 percent in July of 1995 and a record low of -8.20 percent in July of 2009.
Written by Lexy Nantu, Email: firstname.lastname@example.org