China: Inflation declines to six-month low in January
In January, consumer prices rose 0.6% from the previous month, up from December’s 0.3% rise. The print reflected higher prices for food, tobacco and liquors as well as for transportation and communication.
Inflation fell from December’s 1.8% to 1.5% in January. The print was in line with what market analysts had expected and represented a six-month low. Annual average inflation, meanwhile, inched down from December’s 1.6% to 1.5% in January.
Producer inflation fell from 4.9% in December to 4.3% in January. The print was slightly below market analysts’ expectations of 4.4% and represented the lowest level since November 2016. Annual average producer inflation fell from December’s 6.3% to 6.1% in January.
January’s dip in inflation is expected to be temporary as it largely reflects seasonal distortions related to the Lunar New Year. The slide in producer inflation was mostly due to lower growth in commodity prices.