Due to the Spring Festival and COVID-19 Impact... China’s Consumer Prices Rose 5.4% in January

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Bloomberg reported on the 10th that China's Consumer Price Index (CPI) last month rose at the fastest rate in 8 years. It was found to have increased by more than 5% in one month due to the Spring Festival and the impact of the novel coronavirus infection (Wuhan pneumonia).

According to the National Bureau of Statistics of China, last month's CPI rose 5.4% year-on-year. This exceeds the 4.5% CPI increase in December last year and is 0.5 percentage points higher than the market expectation of 4.9%. Bloomberg reported that this is the steepest rise in 8 years since January 2011.

The National Bureau of Statistics explained that the expanded CPI increase compared to the same month last year was due to the Spring Festival and the novel coronavirus. Also, pork prices, which have been facing supply shortages due to the outbreak of African swine fever, led the CPI increase again this time by rising 116%. Prices of beef and lamb, substitutes for pork, also remain at high levels.

Core consumer prices, excluding food and energy prices, rose 1.5%.

China's Producer Price Index (PPI) last month turned to an increase, rising 0.1% year-on-year. The PPI had recorded negative growth for six months, including a 0.5% decline in December last year. The rise in PPI is the first in 8 months since May last year, influenced by the increase in oil and natural gas prices.

In China, the novel coronavirus, which originated mainly in Wuhan and Hubei Province, spread throughout the country last month. As the epidemic spread ahead of the Spring Festival, tourist sites closed, cities were locked down, and transportation disruptions occurred, impacting the economy.

This content was produced with the assistance of AI translation services.