13 April 2018
China Sourcing Update: Major Price Indicators (Mar 2018)
Major Price Indicators
1. CPI growth drops in March
The year-on-year growth rate of China’s consumer price index (CPI)  went down from a four-year high of 2.9% in February to 2.1% in March, which was below market expectations.
China’s CPI growth slowed down in March as both food and non-food prices eased on a month-on-month basis after the Chinese New Year holidays had ended in late February. The year-on-year growth in the food component in the CPI fell sharply from 4.4% in February to 2.1% in March, while the year-on-year growth in the non-food component declined from 2.5% in February to 2.1% in March.
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 The CPI, compiled by the National Bureau of Statistics (NBS) of China, measures the price of a basket of goods and services purchased by a typical household. It is noteworthy that the NBS has changed the weights assigned to the various components in the CPI basket, effective from January 2016. The weight of the food component, for example, has been reduced by 3.2 ppt; the weight of the housing component has been increased by 2.2 ppt; and the weights of other components have been adjusted by around or less than 1 ppt. The impact of the re-weighting on the CPI growth was limited, according to the NBS.