Consumer price inflation in China rose to a 29-month high in September, driven mainly by pork prices, but price pressures remained largely moderate in an economy wracked by restrictions to combat the COVID-19 pandemic and a real estate crisis.
China’s central bank is trying to support growth, while at the same time avoiding aggressive steps that could fuel price pressures and risk capital flight, with the Federal Reserve (the US central bank) and other central banks raising rates to combat high inflation.
Data from the Office for National Statistics revealed that the consumer price index increased 2.8 percent year on year, compared to 2.5 percent in August, and recorded the fastest pace since April 2020.
Core inflation, which excludes volatile food and energy prices, slowed to 0.6% in September from 0.8% in August, highlighting weak consumption amid anti-Covid-19 restrictions.
The producer price index rose at the slowest pace since January 2021 and rose 0.9% on an annual basis compared to 2.3% in the previous month, and with expectations for a rise of 1%.
China’s central bank governor, Yi Gang, said the bank would step up support for the economy.
Inflation accelerated, with food prices increasing 8.8 percent on an annual basis from 6.1 percent in August. Pork prices rose 36 percent from 22.4 percent in the previous month. Vegetable prices rose 12.1 percent from 6 percent in the previous month.
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