Consumer and Producer Inflation Rebound in China in August

Serdar HocamAuthor & Editor

Consumer and producer price inflation in China increased in August, pointing to a recovery in economic data.

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Çin’de tüketici ve üretici enflasyonu Ağustos'ta toparlandı

Consumer and wholesale price inflation recorded an increase in the Chinese economy in August. The rise in global commodity costs and strong demand for high-tech products limited the impact of domestic consumption weakness.

Producer Price Index Records Above-Expectation Increase

According to data released by the National Bureau of Statistics, the producer price index increased by 3.8 percent year-on-year in August.

Exceeding economists' expectation of a 3.6 percent increase, the PPI also surpassed the 3.5 percent rise seen in July.

Consumer Inflation and Core Data

According to official data, consumer prices recorded a 0.8 percent year-on-year increase in August.

During the same period, core CPI increased by 1 percent year-on-year.

Background of Inflationary Trends

Economists stated that the recovery trend stemmed from a favorable base effect and rising commodity costs.

NBS Chief Statistician Dong Lijuan attributed the movement in inflation to volatility in global commodity prices and seasonal food prices.