Inflation in China

China Inflation | Economic News & Forecasts

China - Inflation

Inflation hits over two-year high in July

Consumer prices increased 0.50% in July over the previous month, following June's flat result. July's figure marked the highest reading since February. The figure was largely due to rising prices for food.

Consumer inflation came in at 2.7% in July, which was up from June’s 2.5%. July's reading marked the highest inflation rate since April 2020, but was still very low compared to other Asian economies—a sign of subdued domestic demand. Annual average inflation rose to 1.6% in July (June: 1.5%). Finally, producer price inflation fell to 4.2% in July, from the previous month's 6.1%.

Consumer price inflation is expected to stay muted for the remainder of the year. Meanwhile, producer price inflation should continue to trend down on a base effect—given increasingly high producer price inflation readings as last year progressed—and the recent fall in global commodity prices. The recent severe heatwave is an upside risk due to the potential impact on food prices.

FocusEconomics panelists forecast that consumer price inflation will average 2.2% in 2022, which is unchanged from last month’s estimate, and 2.3% in 2023. Producer price inflation is forecast to average 5.8% in 2022, which is up 0.5 percentage points from last month’s forecast, and 1.4% in 2023.

China - Inflation Data

2015   2016   2017   2018   2019  
Inflation Rate (CPI, annual variation in %)1.4  2.0  1.6  2.1  2.9  

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China Inflation Chart

China Inflation
Note: Annual variation of consumer price index (CPI) in %.
Source: National Bureau of Statistics of China and FocusEconomics calculations.

China Facts

Value Change Date
Bond Yield3.17-0.40 %Dec 31
Exchange Rate6.96-0.19 %Jan 01

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