CPI for Oc­to­ber eases slightly

China Daily - - TOP NEWS - By XIN ZHIMING and WANG YANFEI Xinhua con­trib­uted to this story. Con­tact the writ­ers at xinzhim­ing@ chi­nadaily.com.cn

China’s con­sumer in­fla­tion growth eased in Oc­to­ber due to cool­ing do­mes­tic de­mand and a high base last year, of­fi­cials said on Fri­day.

An­a­lysts said with the in­dex ex­pected to con­tinue to mod­er­ate, it will not af­fect the coun­try’s mon­e­tary eas­ing this year.

The con­sumer price in­dex growth was 2.5 per­cent last month, un­changed from Septem­ber, the Na­tional Bureau of Statis­tics said.

But in month-on-month terms, CPI growth slowed to 0.2 per­cent from 0.7 per­cent in Septem­ber.

The re­sults are at­trib­ut­able to fall­ing food prices, said Sheng Guo­qing, a se­nior of­fi­cial at the bureau.

En­ergy prices were the main con­trib­u­tor to con­sumer in­fla­tion growth last month, Sheng said.

“The eas­ing of con­sumer in­fla­tion is not sur­pris­ing,” ac­cord­ing to the Bank of China In­ter­na­tional. The CPI is ex­pected to con­tinue to weaken in the re­main­der of the year, it said.

Se­cu­ri­ties firm No­mura said China’s in­fla­tion­ary pres­sure re­mains “mild and con­tained”.

It said that China’s con­sumer in­fla­tion may re­main mild — at 2.1 per­cent — for the whole of 2018 on av­er­age.

China set a CPI growth con­trol tar­get of 3 per­cent for this year in March. In 2017, real CPI growth was 1.6 per­cent.

Pre­vi­ously, the mar­ket had shown con­cern about surg­ing con­sumer in­fla­tion, cou­pled with slow­ing eco­nomic growth. But the Oc­to­ber CPI re­sult shows that such wor­ries were overblown, the Bank of China In­ter­na­tional said.

No­mura said: “We … be­lieve con­tained in­fla­tion will not af­fect Bei­jing’s pol­icy eas­ing agenda.

“In­vestors should keep an eye on de­vel­op­ments around African swine fever, but risks to head­line in­fla­tion from other fac­tors — floods in Shouguang, Shan­dong prov­ince, sky­rock­et­ing rents in Bei­jing, ren­minbi de­pre­ci­a­tion and es­ca­lat­ing China-US trade ten­sions — are over­done.”

Growth of China’s fac­tory-gate in­fla­tion or pro­ducer price in­dex slowed for the fourth month in Oc­to­ber, stand­ing at 3.3 per­cent, as a re­sult of cool­ing do­mes­tic de­mand for raw ma­te­ri­als and a rel­a­tively high base in the same month last year.

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