China’s headline CPI declined more moderately in February
Food prices fell by 0.2% y/y in February, reversing the growth in the previous two months
China’s headline Consumer Price Index (CPI) declined by 0.2% y/y in February, slightly improving from a 0.3% y/y drop in January. Food prices fell by 0.2% y/y in February, reversing the growth in the previous two months, with the plunge in pork price being a key factor. Core inflation excluding volatile food and energy prices barely changed from the same period last year, easing from a 0.3% decline in January.
With the successful containment of regional COVID-19 outbreaks and the robust holiday spending, CPI for the services sector rebounded, declining by only 0.1% y/y compared to a 0.7% y/y drop in January.
Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q1 2021 report.