China's April CPI Increase Exceeds Expectations, Enters 2% Range for First Time in 5 Months

[Photo by Xinhua News Agency]

[Asia Economy Reporter Park Byung-hee] Inflation in China in April, amid ongoing COVID-19 lockdown measures, rose significantly more than expected. The consumer price index (CPI) inflation rate recovered to the 2% range for the first time in five months, while the producer price index (PPI) inflation rate, expected to fall to the 7% range, remained in the 8% range.

Bloomberg News reported on the 11th, citing data from China's National Bureau of Statistics, that China's April CPI rose 2.1% year-on-year. The April CPI increase exceeded the 1.8% forecast by analysts surveyed by Bloomberg. China's CPI inflation rate re-entered the 2% range for the first time in five months after recording 2.3% in November last year. The CPI inflation rate had remained low at 0.9% to 1.5% over the previous four months.

The April PPI inflation rate was 8.0%, maintaining the 8% range for two consecutive months following March's 8.5%. Analysts surveyed by Bloomberg had expected the April PPI inflation rate to be 7.8%.

Bloomberg assessed that China's lockdown measures to curb the spread of COVID-19 caused production disruptions, leading to higher-than-expected inflation. The lockdowns made it difficult for manufacturers to secure raw materials and operate factories, resulting in supply shortages.

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