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In Foreign Affairs

Core inflation in China at the lowest point since 2010

10th March 2020 Charles Sizemore

Core inflation in China at the lowest point since 2010 Pin It

Core inflation in China increased by 1 percent in February compared to a year earlier. That was the lowest level since 2010. The new corona virus in particular has an impact on the average price increase due to a lower demand for services and goods. In the case of core inflation, the sharply fluctuating prices of fuel and food are not included in the calculation.

Food costs continued to rise due to rising pork prices, the Chinese statistics agency reported. Partly as a result, general consumer inflation on an annual basis came to 5.2 percent, the same as one month previously. The prices charged by products for their products showed an annual decrease of 0.4 percent. On a monthly basis, it was an increase of 0.1 percent.

Economists still think that Chinese inflation may be volatile in the coming period, because the virus may cause food prices to rise. The Wuhan virus can also ensure that households are in control, which in turn would have a depressing effect on inflation.

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