MNI DATA IMPACT: China Jan CPI Soars To More Than 8-Year High

     BEIJING (MNI) - Big increases in food prices saw inflation in China soar to

5.4% y/y in January from 4.5% in the previous month, beating the 4.9% expected

by most economists. 

     This was the highest inflation rate since October 2011. Driving the result

was the Chinese New Year holiday and the coronavirus outbreak which have

triggered food stockpiling, as well as the low base from the same period last

year as the holiday was a month earlier than in 2019. 

     Meanwhile, factory-gate inflation shook off negative growth for the first

time in 14 months.

     Here are key takeaways from data released by the National Bureau of

Statistics on Monday:

     - CPI accelerated largely on higher food prices, which spiked by 20.6% y/y

from 17.4% in December, accounting for 4.1 percentage points of the CPI gain. In

the food category, pork prices accelerated to 116.0% y/y from December's 97.0%.

     - The core CPI, excluding food and energy prices, expanded 0.1 pp to 1.5%

y/y from December.

     - The CPI gained 1.4% monthly, up from 0.0% in the previous month. 

     - The PPI significantly recovered to 0.1% y/y from -0.5% in December, given

improved prices on petroleum and natural gas, as well as non-ferrous metal

products. The figure was in line with the forecast of 0.1%.

     - While it increased on an annualized basis, the PPI remained flat at 0.0%

in Jan-Dec from Dec-Nov.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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