China keeps inflation in check as CPI rises everywhere

0

On top of everything else, right now the public is dealing with rising inflation, which has been rising for about a year now and is at levels not seen in decades. One of the main reasons for this surge in inflation is due to the massive spending programs of central banks and governments around the world. Tens of trillions were spent, which kept financial markets on a bullish trend, even as it spilled over into consumer products, which also became increasingly expensive.

In the United States, CPI inflation rose to 7.5% in January, and now, with the surge in crude oil prices over the past few weeks, due to the conflict in Ukraine, inflation is expected further increase. Central banks have started raising interest rates after scaling back QE programs.

But China seems to be out of this world, as prices there are stagnating. In fact, inflation decelerated in February, while it accelerated in the rest of the world. China’s CPI in February rose only 0.5% on a monthly basis, although it recorded a 0.6% increase, decelerating from the 0.9% increase of January.

China CPI Inflation Report for February

  • Year-on-year CPI for February 0.9% vs. 0.9% expected
  • Year-on-year CPI in January was 0.9%
  • MoM CPI comes in at 0.6% vs. 0.5% expected

Producer Price Index Inflation

  • Year-on-year PPI for February 8.8% vs. 8.7% expected
  • The January PPI was 9.1%
  • January PPI MoM +0.5%
Share.

About Author

Comments are closed.