MADRID, 10 Feb. (EUROPA PRESS) –
China’s consumer price index (CPI) registered a year-on-year decline of 0.3% last January, after a rise of two tenths in December, while the industrial production price index rose three tenths in the first month of the year, its first positive reading since January 2020, according to data from the National Statistics Office (ONE).
The annual inflation rate in Chinese cities fell 0.4% in January, while in rural areas prices fell 0.1%.
Food became more expensive in the first month of 2021 by 1.6% year-on-year, with a 10.9% rise in the price of fresh vegetables and 1.3% in that of fruit, while meat was cheaper by 0 , 4%, including a 3.9% drop in the price of pork.
On the other hand, the Chinese statistical office reported that in January the prices of industrial production rose by 0.3% year-on-year, after having fallen by 0.4% last December. This is the first time since January 2020 that China’s wholesale inflation has not declined, suggesting a gradual recovery in demand.
“It is encouraging that there are signs that demand-side pressures continued to strengthen last month,” said Mark Williams, chief Asia economist at consulting firm Capital Economics.
In this sense, the expert considers it probable that the CPI will rebound in February with the Lunar New Year holiday, standing at around 2% at the end of the second quarter. “That should not alarm the People’s Bank of China, while it will assure them that they are right to focus on controlling credit risks,” he added.
“We believe that the People’s Bank of China will tighten its policy this year,” Williams said.
–
