China Inflation Rose 0.8% in January, Missing Expectations (FXI)

China's National Bureau of Statistics reported that consumer prices rose 0.8 percent in January, versus consensus expectations calling for growth of 0.9 percent and down from 1.5 percent growth the prior month.

Below is the press release from China's NBS:

In January, the consumer price index (CPI) went up by 0.8 percent year-on-year. The prices grew by 0.8 percent in cities and 0.6 percent in rural areas. The food prices went up by 1.1 percent, while the non-food prices increased 0.6 percent. The prices of consumer goods went up by 0.5 percent and the prices of services grew by 1.3 percent.

In January, the consumer prices increased 0.3 percent month-on-month. Of which, prices increased 0.3 percent in cities and 0.2 percent in rural areas. The food prices went up by 0.7 percent, and the non-food prices remained at the same level (the amount of change was 0, similarly hereinafter). The prices of consumer goods increased 0.2 percent, and the prices of services increased 0.3 percent.

I. Year-on-Year Changes of Prices of Different Categories

In January, food prices went up by 1.1 percent year-on-year, affecting nearly 0.37 percentage points increase in the overall price level. Of which, the prices of eggs went up by 8.3 percent, affecting nearly 0.07 percentage points increase in the overall price level; fresh fruits, up by 3.3 percent, affecting nearly 0.08 percentage points increase in the overall price level; grain, up by 2.9 percent, affecting nearly 0.09 percentage point increase in the overall price level; aquatic products, up by 0.4 percent, affecting nearly 0.01 percentage point increase in the overall price level; meat, poultry and related products, down by 0.8 percent, affecting nearly 0.06 percentage points decrease in the overall price level (price of pork was down by 5.3 percent, affecting nearly 0.17 percentage points decrease in the overall price level); fresh vegetables, down by 0.6 percent, affecting nearly 0.02 percentage points increase in the overall price level.

In January, non-food prices went up by 0.6 percent year-on-year. Of which, the prices of clothing, health care and personal articles, household facilities, articles and maintenance services, residence, recreation, education, culture articles and services increased 2.9, 1.6, 0.9, 0.8 and 0.3 percent respectively, that of transportation and communication, tobacco and liquor decreased 2.2 and 0.4 percent respectively.

According to estimation, in the 0.8 percent growth in January, the carryover effect of last year’s prices rising accounted for 0.5 percentage points, while new prices rising factors in this year accounted for 0.3 percentage points.

II. Month-on-Month Changes of Prices of Different Categories

In January, food prices went up by 0.7 percent month-on-month. Of which, prices for fresh vegetables increased 4.0 percent, affecting nearly 0.13 percentage points increase in the overall price level; prices for fresh fruits went up by 3.9 percent, affecting nearly 0.09 percentage points increase in the overall price level; prices for aquatic products increased 2.2 percent, affecting nearly 0.06 percentage points increase in the overall price level; prices for pork was down by 1.4 percent, affecting nearly 0.04 percentage points decrease in the overall price level; prices for eggs decreased 3.4 percent, affecting nearly 0.03 percentage points decrease in the overall price level.

Non-food prices kept at the same level month-on-month. Of which, the month-on-month prices for health care and personal articles, recreation, education, culture articles and services, household facilities, articles and maintenance services increased 0.4, 0.4 and 0.2 percent respectively; that of tobacco and liquor, residence, kept at the same level; that of transportation and communication, clothing decreased 0.4 and 0.3 percent respectively.

Consumer Prices in January

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