20 Feb 2018
China Sourcing Update: Major Price Indicators (Jan 2018)
Major Price Indicators
1. CPI growth falls in January
The year-on-year growth rate of China’s consumer price index (CPI) went down from 1.8% in December 2017 to 1.5% in January 2018, which was in line with market expectations.
The slow down in CPI growth in January was largely attributable to the different timing of the Chinese New Year each year. The Chinese New Year in 2018 began in mid-February, while that in last year was from late January. Due to a higher comparison base in January last year, the year-on-year growth in the non-food component in the CPI dropped to 2.0% in January 2018 from 2.4% in December 2017, while the year-on-year growth in the food component went down to minus 0.5% in January from minus 0.4% in the previous month, despite a month-on-month rise in food prices caused by bad weather.
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