China Consumer Price Index
CEIC Gallery/Emerging Economies - October 6th, 2016
In August, China's CPI rose 1.3% YoY, which marked the slowest growth since October, 2015, 0.4ppt lower than the median forecasr of 1.7% YoY. However, core CPI excluding food and energy flattened at similar level compared to the same period of last year.
Food price, especially the port price, is the dragging force
- Chart 2.1: The big discrepancy between CPI and Core CPI is mainly caused by the dropping food price. Due to high base last year, food price occured the biggest decline of 2.3% YoY since February, 2015.
- Chart 2.2: Notably, food price largly increased by 1.6% MoM last August, which was the greatest single-month increase since 2011.
- Chart 2.3 & 2.4: Specially, slumping pork price is the main dragging force. In August, pork price dropped 11.04
- Chart 3: Non-food CPI remained stable in August, namely, 0.3% YoY.
Future Supporting Force
- Chart 4: Due to the booming property market, rental price continued to increase on a quarter-on-quarter basis for the seventh month. Looking foward, strong rental market is going to support the overall CPI index from continuing sliding.