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An undated editorial photo of Chinese yuan cash bills and the flag of the People’s Republic of China.
Javier Ghersi | Moment | Getty Images
China’s consumer prices were flat in September, while factory gate prices saw annual declines slow for a third month, underscoring the “tortuous” nature of the post-Covid growth recovery in the world’s second-largest economy.
The consumer price index was flat on an annual basis in September, the National Bureau of Statistics reported Friday, below than the median estimate for a 0.2% increase in a Reuters poll. CPI inched up 0.1% in August for the first year-on-year increase in three months.
The producer price index fell 2.5% from a year earlier, weaker than expectations for a 2.4% decline, after a 3% drop in August. The drop in factory prices was the smallest in seven months.
Tepid prices underscore what China’s top leaders labeled as a “tortuous” economic recovery after the country emerged from its draconian zero Covid curbs toward the end of last year. China stands as a stark outlier among the world’s major economies that are mostly still battling stubbornly high inflation after the Covid-19 pandemic peaked.
In fact, China was tethering on the verge of deflation just months before. Despite narrowing producer prices in September, the decline is still the 12th straight monthly decline on an annualized basis.
Weaker food prices
Weaker food prices were a big drag on September’s consumer prices. Food prices collectively fell 3.2% from a year earlier.
In particular, China’s National Bureau of Statistics said the price of pork — a key staple meat in Chinese diets — tumbled 22% last month from a year ago. That’s as the price of livestock and meat collectively dropped 12.8% and the price of fresh vegetables fell 6.4%.
The bureau released information that showed China’s national consumer prices increased 0.4% overall in the first nine months this year, compared to a year ago.
This is a developing story. Please check back for further updates.
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