China inflation hits highest level in 15 months

Author: 
AFP
ID: 
1560313976445672200
Wed, 2019-06-12 04:16

BEIJING: Inflation in China rose to its highest level in more
than a year in May driven by surges in prices due to the African
swine fever epidemic and bad weather, official data showed
Wednesday.
But while prices are increasing, demand remains weak because of the
trade war with the United States and economic uncertainty.
The consumer price index (CPI) — a key gauge of retail inflation
— hit 2.7 percent, the National Bureau of Statistics (NBS) said,
compared with 2.5 percent in April and the highest since February
2018.
The data was in line with a forecast of analysts polled by
Bloomberg News.
The rise was “largely the result of renewed acceleration in food
price inflation,” and supply disruptions caused by African swine
fever, Capital Economics said in a note.
Beijing’s official statistics say around one million pigs have
been killed since the first outbreak in August — but that is
widely considered to be an underestimate.
The producer price index (PPI), an important indicator of domestic
demand, hit 0.6 percent in May, from 0.9 percent the previous
month.
Economic “growth could slow further on escalating US-China trade
tensions,” Nomura International said in a note.
“We expect Beijing to undertake further easing/stimulus measures
to bolster confidence and to stabilize growth.”
US President Donald Trump is expected to meet China’s Xi Jinping
at the G20 summit in Japan this month to discuss the long-running
trade row, but US Commerce Secretary Wilbur Ross has warned that it
will not be a stage for a “definitive agreement.”

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Source: FS – All-News-Economy
China inflation hits highest level in 15 months