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China March Inflation 3.6Pct, Above Expectations

04-09 10:51 Caijing
The consumer price index (CPI) grew 3.6 percent year-on-year after it registered the slowest growth of 3.2 percent since June 2010 in February

China’s inflation has risen to a higher-than-expected level in March, beating a wide forecast by economists of between 3.2-3.5 percent due to higher vegetable and gasoline prices.

The consumer price index (CPI) grew 3.6 percent year-on-year after it registered the slowest growth of 3.2 percent since June 2010 in February, according to data released by the National Bureau of Statistics (NBS) on Monday.

Food prices hiked 7.5 percent in the month, contributing about 2.39 percentage points to the total prices gains. Of them, vegetable prices posted a significant gain of 20.5 percent, driving the whole inflation by 0.64 percent or so.

The year-on-year increase of CPI in the first three months was 3.8 percent, compared with a forecast of 3.5 percent according to Vice-Director of the Chinese National Development and Reform Commission Zhang Xiaoqiang, based on preliminary data of institutions.

A previous forecast by Bank of Communication projected CPI growth at around 3.5 percent, citing ebbing growth in food prices. Historical data usually suggests a fall in food and non-food prices in March following the traditional peak around the New Year holiday, while offsetting recent rally in vegetables and aquatic products, March’s CPI could be at 3.5 percent, according to chief economist with Industrial Bank Lu Zhengwei.

The NBS also announced today that the producer price index (PPI), which gauges inflation at the wholesale level, fell 0.3 percent year on year.

Related:

China:CPI Data Above Market Expectations(ANZ Report);

China March CPI: Edging up Temporarily (HSBC Report)


 

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