Markets.com Logo
euEnglish
LoginSign Up

China's CPI climbed 0.5%

Aug 8, 2024
3 min read
Table of Contents
  • 1. Increase in China’s CPI
  • 2. Food prices rose in China

cpi-width-1200-format-jpeg.jpg

China’s consumer prices rose by a more-than-expected 0.5% in July from a year ago, boosted by a surge in pork prices, according to data from the National Bureau of Statistics released Friday.

Key points:
 

  • China’s consumer prices increased by 0.5% year-on-year in July, surpassing expectations, as reported by the National Bureau of Statistics on Friday.
  • Analysts surveyed by Reuters had anticipated a smaller rise, forecasting a 0.3% increase in the consumer price index for the month.
  • The core CPI, excluding food and energy costs, rose 0.4% compared to the previous year, a decline from the 0.6% increase recorded in June.
     


Increase in China’s CPI


Analysts surveyed by Reuters had anticipated a modest rise in the consumer price index to 0.3% in July from the 0.2% recorded in June. The data arrives amid declining manufacturing activity and growing worries about export prospects, reflecting the challenges faced by the world’s second-largest economy, which is struggling with weak domestic demand.

The 0.5% increase in CPI for July was the highest since the 0.7% rise seen in February, according to data from Wind Information. Notably, February's rise coincided with China's major holiday, the Lunar New Year.

The increased inflation comes following several more measures from Beijing to increase local liquidity conditions, mainly interest rate cuts by the PBOC. Despite the improved reading for July, Chinese inflation still remained largely languid, amid high unemployment, a sustained property market slowdown and weak consumer sentiment. 
 


Food prices rose in China

 

china-width-1200-format-jpeg.jpg

The rise in food prices, driven by high temperatures and heavy rainfall in some regions, contributed significantly to this monthly growth. Food prices swung from a drop of 2.1% on-year in June to an unchanged outcome in July, while the growth in non-food prices slowed from 0.8% in June to 0.7% last month.

 

"There's a sharp contrast between food and ex-food CPI... none of the other goods and services saw inflationary moves, suggesting no sign of a pickup in domestic demand," said Xu Tianchen, senior economist at the Economist Intelligence Unit.



In July, pork prices, a staple in China’s diet, jumped 20.4% year-on-year, marking the largest increase since December 2022, as reported by Wind.

Pork prices play a significant role in China’s consumer price index, but can be prone to large swings due to disease or other factors affecting production.
Core CPI, which strips out food and energy prices, rose by 0.4% year-on-year in July. That’s down from 0.6% in June.

Core inflation, excluding volatile food and fuel prices, gained 0.4% on-year in July, down from 0.6% in June. Weak domestic demand has become a major pain point for the economy, while hopes for an export-led recovery have also been crimped by rising trade tensions with the West, tariffs on Chinese goods and fears of a U.S. recession.
 


Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients. 

Frances Wang
Written by
Frances Wang
SHARE

Markets

  • Palladium - Cash

    chartpng

    --

    -0.93%
  • EUR/USD

    chartpng

    --

    -0.13%
  • Cotton

    chartpng

    --

    -0.74%
  • AUD/USD

    chartpng

    --

    -0.47%
  • Santander

    chartpng

    --

    0.16%
  • Apple.svg

    Apple

    chartpng

    --

    -0.00%
  • easyJet

    chartpng

    --

    -0.54%
  • VIXX

    chartpng

    --

    -0.50%
  • Silver

    chartpng

    --

    -2.15%
Tags DirectoryView all
Table of Contents
  • 1. Increase in China’s CPI
  • 2. Food prices rose in China

Related Articles

Federal Funds Rate vs. SOFR: Liquidity Measurement Debate in US Financial System

As excess cash in the US financial system shrinks, calls grow to reassess how to measure liquidity tightness and which benchmarks the Fed should target.

Liam James|about 11 hours ago

Musk Praises Tesla Autopilot Performance in China Test, Sparking Debate

Elon Musk lauded Tesla's performance in autonomous driving tests conducted by Dongchedi in China, but the tests have ignited a debate about their accuracy and the safety of self-driving technology.

Ava Grace|about 12 hours ago

Europe Offers Iran Extension on Sanctions Deadline Amid Nuclear Program Concerns

In an effort to de-escalate tensions, European nations are proposing to extend the deadline for reimposing UN sanctions on Iran, subject to specific conditions, including resuming negotiations with Washington and cooperating with the IAEA.

Emma Rose|about 13 hours ago
Markets.com Logo
google playapp storeweb tradertradingView

Contact Us

support@markets.com+12845680155

Markets

  • Forex
  • Shares
  • Commodities
  • Indices
  • Crypto
  • ETFs
  • Bonds

Trading

  • Trading Tools
  • Platform
  • Web Platform
  • App
  • TradingView
  • MT4
  • MT5
  • CFD Trading
  • CFD Asset List
  • Trading Info
  • Trading Conditions
  • Trading Hours
  • Trading Calculators
  • Economic Calendar

Learn

  • News
  • Trading Basics
  • Glossary
  • Webinars
  • Traders' Clinic
  • Education Centre

About

  • Why markets.com
  • Global Offering
  • Our Group
  • Careers
  • FAQs
  • Legal Pack
  • Safety Online
  • Complaints
  • Contact Support
  • Help Centre
  • Sitemap
  • Cookie Disclosure
  • Awards and Media

Promo

  • Gold Festival
  • Crypto Trading
  • marketsClub
  • Welcome Bonus
  • Loyal Bonus
  • Referral Bonus

Partnership

  • Affiliation
  • IB

Follow us on

  • Facebook
  • Instagram
  • Twitter
  • Youtube
  • Linkedin
  • Threads
  • Tiktok

Listed on

  • 2023 Best Trading Platform Middle East - International Business Magazine
  • 2023 Best Trading Conditions Broker - Forexing.com
  • 2023 Most Trusted Forex Broker - Forexing.com
  • 2023 Most Transparent Broker - AllForexBonus.com
  • 2024 Best Broker for Beginners, United Kingdom - Global Brands Magazine
  • 2024 Best MT4 & MT5 Trading Platform Europe - Brands Review Magazine
  • 2024 Top Research and Education Resources Asia - Global Business and Finance Magazine
  • 2024 Leading CFD Broker Africa - Brands Review Magazine
  • 2024 Best Broker For Beginners LATAM - Global Business and Finance Magazine
  • 2024 Best Mobile Trading App MENA - Brands Review Magazine
  • 2024 Best Outstanding Value Brokerage MENA - Global Business and Finance Magazine
  • 2024 Best Broker for Customer Service MENA - Global Business and Finance Magazine
LegalLegal PackCookie DisclosureSafety Online

Payment
Methods

mastercardvisanetellerskrillwire transferzotapay
The markets.com/za/ site is operated by Markets South Africa (Pty) Ltd which is a regulated by the FSCA under license no. 46860 and licensed to operate as an Over The Counter Derivatives Provider (ODP) in terms of the Financial Markets Act no.19 of 2012. Markets South Africa (Pty) Ltd is located at BOUNDARY PLACE 18 RIVONIA ROAD, ILLOVO SANDTON, JOHANNESBURG, GAUTENG, 2196, South Africa. 

High Risk Investment Warning: Trading Foreign Exchange (Forex) and Contracts For Difference (CFDs) is highly speculative, carries a high level of risk and is not appropriate for every investor. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. Please read the full  Risk Disclosure Statement which gives you a more detailed explanation of the risks involved.

For privacy and data protection related complaints please contact us at privacy@markets.com. Please read our PRIVACY POLICY STATEMENT for more information on handling of personal data.

Markets.com operates through the following subsidiaries:

Safecap Investments Limited, which is regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license no. 092/08. Safecap is incorporated in the Republic of Cyprus under company number ΗΕ186196.

Markets International Limited is registered  in the Saint Vincent and The Grenadines (“SVG”) under the revised Laws of Saint Vincent and The Grenadines 2009, with registration number  27030 BC 2023.

Close
Close

set cookie

set cookie

We use cookies to do things like offer live chat support and show you content we think you’ll be interested in. If you’re happy with the use of cookies by markets.com, click accept.