Inflation in China in February was the lowest in a year

According to the data of the State Statistical Office China, consumer prices in the country (CPI index) increased by 1% year-on-year after rising by 2.1% in January. Analysts on average predicted an increase of 1.9%.

On a monthly basis, the CPI index decreased by 0.5%, which was the first decrease in three months. In January, the indicator increased by 0.8%.

Inflation in cities and rural areas increased by 1% in annual terms in February. Food products rose by 2.6%, non-food products – by 0.6%, consumer goods increased in price by 1.2%, services rose by 0.6%.

The statistical agency also clarifies that health services in February compared to the same period last year rose by 1%, prices for education and cultural and entertainment events increased by 1.2%, prices for transport and communications – by 0.1%, housing fell by 0.1%.

Meanwhile, producer prices (PPI index) in China last month decreased by 1.4% in annual terms: the decline was recorded for the fifth month in a row. Experts on average expected a decrease of 1.3% after a decrease of 0.8% in January.

In general, the Chinese government expects that inflation in the country in 2023 will be about 3%. By the end of 2022, this figure was 2%, although the authorities expected an increase of about 3%.