Inflation higher due to rising food prices

Consumer prices in China have gone up in the first months. Inflation has gone up from 1.6 to 1.8 per cent, mostly because of rising food prices, the National Bureau of Statistics reported.

According to Shanghai Daily, China’s inflation growth accelerated to a five-month high in January. The Consumer Price Index, the main gauge of inflation, expanded 1.8 percent from a year earlier, up from the increase of 1.6 percent in December. The average price of food went up 4.1 percent in January, much faster than the rise of 2.7 percent in December and November’s 2.3 percent. Researchers say that seasonal factors and January’s extreme cold disrupted supplies, leading to higher prices for fresh vegetables in particular - vegetable prices jumped 14.7 percent.

The recent activity data also showed weakening economic vitality. China’s trade slumped more than expected in January, with exports losing 6.6 percent year on year and imports sliding 14.4 percent.

Further reading on shanghaidaily.com

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