Consumer price index CPI Photo: CFP
China's consumer price index (CPI),
MK sport a key gauge of inflation, grew by 0.6 percent year-on-year in August, the National Bureau of Statistics (NBS) said on Monday.
In June, the CPI rose by 0.2 percent and in July, CPI rose by 0.5 percent.
NBS statistician Dong Lijuan noted that August saw a seasonal rise in consumer prices due to high temperatures and heavy rainfall.
The CPI in August rose by 0.4 percent month-on-month, down 0.1 percentage points from July. Food prices were up by 3.4 percent, an increase of 2.2 percentage points, contributing 0.60 percentage points to the overall price rise, Dong said.
High temperatures in summer pushed up prices for fresh vegetables by 18.1 percent, mushrooms by 9.8 percent, fruits by 3.8 percent and eggs by 3.3 percent, altogether contributing 0.49 percentage points to the month-on-month CPI rise.
Pork prices increased by 7.3 percent, adding 0.10 percentage points, driven by reduced supply. Non-food prices rose by 0.2 percent, a decrease of 0.5 percentage points from July, contributing 0.13 percentage points to the CPI.
Chinese analysts expect the CPI to see a "moderate rebound" in the second half of the year, driven by growing consumption demand and higher food prices, coupled with last year's low base effect. A strong increase in services consumption is also anticipated to support price growth.
"Demand for items like vegetables and clothing may increase, and supplies could remain tight. However, categories like housing rentals may continue to see a downward trend," Bian Yongzu, executive deputy editor-in-chief of Modernization of Management magazine, told the Global Times on Monday.
"Overall, it is expected that the CPI to trend upward in the second half of the year, as consumption will rise around key holidays such as the Mid-Autumn Festival, National Day and New Year's Day," Bian said.
The NBS data also showed that the producer price index, which measures costs for goods at the factory gate, dropped by 1.8 percent year-on-year in August, mainly due to insufficient domestic demand and lower prices for imported commodities, according to Dong.
Global Times
