Chinese CPI rises 1.2% y-o-y in October
Chinas State Statistics Bureau released on Monday the October price indices.
In October, the Chinese consumer price index (CPI) rose 1.2 percent year on year. Broken down by details, CPI in urban areas was up 1.2 percent, while rural areas saw a 1.3 percent rise. Food items were up 1.3 percent, and non-food items rose 1.2 percent year on year. Consumer goods witnessed a 0.7 percent rise year on year, while service prices jumped 3.1 percent.
In month-on-month terms, CPI was up 0.4 percent. Through the first ten months, the cumulative CPI was up 1.9 percent year on year.
The total volume of social
consumption was RMB 584.7 billion, a year-on-year increase of 12.8 percent. Broken down specifically, wholesale and retail
consumption was RMB 484.5 billion ($60 billion), up 12.7 percent year on year. The food service industry accounted for RMB 84.7 billion ($10.5 billion), up 15.8 percent year on year, while other sectors accounted for RMB 15.5 billion ($1.9 billion), up 1.1 percent.
Expanding domestic demand and
consumption are major measures that Beijing hopes to encourage in order to improve
Chinas economic structure. The government would like to lower the economic risks by lessening the countrys dependence on export and investment.
CPI increased slightly compared to last month; however, it still lingers at a low level. Social retail turnover kept a stable upward trend; nevertheless, it is not a mainstay in fostering the economic growth compared to export and investment. Beijing has its work cut out in terms of trying to expand domestic demand.
Some economists worry that
China risks deflation due to the low CPI. According to a report from the Peoples Bank of
China,
China still suffers inflationary pressures since prices of refined oil, railway
freight, and utilities are under government control.
In general,
Chinas macro-economy is in a situation of high price increase, low inflation, which is unlikely to see great changes in the short term.
SteelOrbis Shanghai