Vegetable prices in China have risen significantly this summer, with analysts pointing to high temperatures and frequent rainfall as the main reasons.
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BEIJING – China reported this on Monday The consumer price index rose by 0.6% year on yearr in August, missing expectations as costs for transportation, household goods and rental prices fell.
According to a Reuters poll, the consumer price index rose by 0.7% year-on-year in August.
According to data from Wind Information, food prices rose 2.8% year-on-year in August, the first positive print since June 2023. Pork prices rose 16.1% in August, while vegetable prices rose 21.8%.
The core CPI, which excludes food and energy prices, rose 0.3% in August from a year ago, a slower increase for the second month in a row.
Consumer prices in China have remained subdued since the pandemic due to subdued domestic demand.
The former head of China’s central bank, Yi Gang, told a conference on Friday that the country should focus on “fighting deflationary pressures.” He predicts that the consumer price index will be slightly above zero by the end of the year.
Retail sales rose just 2.7% in July from a year ago. Retail sales and industrial data for August will be released on Saturday.
The producer price index fell 1.8% year-on-year in August, more than the estimated 1.4% decline in the Reuters poll.
This is a breaking news story. Check back later for updates.
– CNBC’s Anniek Bao contributed to this report.