January 25, 2021

Inflation moderates in China, but grows 3.3% year-on-year in April

China’s consumer price index (CPI), the main indicator of inflation, rose 3.3% year-on-year in April, from 4.3% the previous month, the National Statistics Office (ONE) reported today.

The figure is lower than that predicted by analysts, who had forecast an increase in inflation of around 3.7% in April.

This is the lowest CPI percentage since September 2019 (which reached 5.4% last January), in a context of government control to contain the SARS-CoV-2 coronavirus pandemic and measures stimulus to revive the economy after the stoppage caused by the virus.

This moderation is mainly due to “the consolidation of the trend of prevention and control of the epidemic” and to the acceleration “of production and life”, according to the ONE Dong Lijuan statistician.

As in previous months, the ONE data shows that the main protagonists of the rise in the CPI were food, which increased 14.8%, compared to 18.3% in March.

Specifically, the price of pork, one of the products most demanded by Chinese consumers, remains unstoppable and increased 96.9% year-on-year last month (in March it rose 116.4% year-on-year and in February 135%), since its production has been diminished by an epidemic of African swine fever that has decimated the national herd.

Likewise, the price of fresh vegetables grew by 3.7%, while that of fresh fruits fell by 10.5% and that of eggs fell by 2.7%.

On the other hand, ONE indicated that the price of non-food products increased by 0.4% year-on-year (by 0.7% in the previous month), that of consumer goods by 4.7% and those of services 0.9%.

The cost of medical care rose 2.2% year-on-year in April and that of education, culture and entertainment 2%, but the prices of transport and communications fell 4.9%, those of clothing clothing 0.4% and housing 0.3%.

The source also published today the production price index (PPI), which measures wholesale inflation, which fell 1.3% year-on-year in April, after falls of 1.5% in March and 0, 4% in February.


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