The growth of China’s consumer price index (CPI), a main gauge of inflation, beat forecasts in March reaching 1.5 percent year-on-year as the nation grappled with inflation caused by multiple factors including the recent flare-ups of COVID-19 cases and ongoing price rises across a number of international bulk commonalities.
On a monthly basis, the CPI increase expanded 0.6 percentage points compared with February. Food prices fell by 1.5 percent, affecting the CPI to drop by about 0.28 percentage points. Noticeably, the price of fresh vegetables rose 17.2 percent from the decline seen in the previous month, data from the National Bureau of Statistics (NBS) showed Monday.
Non-food prices of the industrial consumer goods drove up CPI growth in March accounting for a 1.77 percentage spike. Gasoline, diesel and liquefied petroleum gas prices rose 24.6 percent, 26.9 percent and 27.1 percent, respectively, all extending gains, according to the NBS data.
In March, affected by factors such as COVID-19 flare-ups in multiple localities across China and the rise in international commodity prices, the CPI was flat month-on-month, and the year-on-year increase expanded, said Dong Lijuan, a senior statistician from the NBS.
Under strict virus prevention measures, transportation and other links are affected, and the prices of vegetables and fruits have also risen accordingly, analysts said, estimating that the year-on-year growth of CPI will continue into the next few months.
China’s Ministry of Transport has vowed over the weekend to ensure the smooth operation of international and domestic freight, the transportation of essential goods and commodities in particular, to help maintain stability of the global industrial and supply chains.
Monday’s data also showed China’s producer price index (PPI), which measures costs for goods at the factory gate, rose 8.3 percent year-on-year in March, also beating expectations.
Following the Russia-Ukraine conflict, international bulk commodity prices continued to remain strong, international crude oil prices fluctuated at high levels, non-ferrous metal prices were also at high levels.
On a month-on-month basis, PPI went up 1.1 percent in March, expanding 0.6 percentage points from the previous month. While on a yearly basis, the PPI growth fell 0.5 percentage point from February mainly due to the high base of the same period last year, NBS data showed.
Photo:Xinhua
