MNI BRIEF: China July CPI Hits Five Month High At 0.5% Y/Y
China's Consumer Price Index rose 0.5% y/y in July to hit a five-month high, quickening from June’s 0.2% and beating the 0.3% consensus, data from the National Bureau of Statistics showed Friday.
Food prices remained flat from the same time last year, reversing June’s 2.1% fall. Pork prices rose by 20.4% while vegetables and eggs also increased amid hot and rainy weather. Non-food prices rose 0.7% due to base effects.
On a monthly basis, CPI rose 0.5%, reversing June's -0.2%, as fast increases in air tickets, tourism and hotels during the summer holiday added 0.24 percentage points.
PPI declined 0.8% y/y, unchanged from last month and marking the 22nd consecutive negative reading, but was in line with the market consensus of -0.9%. PPI fell 0.2% m/m, the same as June, driven by weak demand and falling international commodity prices, the NBS said.