Year-on-year CPI and PPI inflation both moderated in January
China’s consumer price index (CPI), a main gauge of inflation, rose 0.9 percent year on year in January, down 0.6 percentage points from the previous month, the National Bureau of Statistics (NBS) said Tuesday.Month-on-month growth was 0.4%, up from 0.3% in the previous month.The producer price index (PPI) rose 9.1 percent year-on-year and fell 0.2 percent month-on-month.Statistics show that in January, food prices fell 3.8 percent year on year, 2.6 percentage points more than the previous month.Among them, affected by the higher base of the same period last year, pork prices fell 41.6%, the decline expanded by 4.9 percentage points;Fresh vegetable prices fell 4.1% from a 10.6% increase in the previous month.The prices of fresh fruit and aquatic products increased by 9.9 percent and 8.8 percent respectively, both of which expanded.Du Bin, chief strategist of Jinyong Investment, told The New Express newspaper that the fall in CPI was mainly driven by the fall in food prices, especially pork prices.Reporters visited guangzhou farmers market found that on February 16, guangzhou Tianhe city places selling lean pork 15.77 yuan a catty, pork belly 13.77 yuan a catty, local white 4 yuan a catty, spinach 5 yuan a catty.The Zhang Aunt that often buys food tells a reporter, recent price of meat dish all drops somewhat.Non-food prices rose 2.0 per cent year-on-year in January, 0.1 percentage points slower than in the previous month.The price of consumer goods rose by 2.5 percent, down 0.4 percentage points.Service prices rose 1.7 percent, an increase of 0.2 percentage points.Core CPI, which excludes food and energy prices, was measured to have risen 1.2 per cent in January from a year earlier, the same pace as the previous month.In the short term, THE CPI still modestly forecast the price trend of the whole year in 2022. According to the analysis of many experts, the CPI increase may be higher than that of 2021, but it will remain within a reasonable range.”Looking ahead, CPI is still very moderate in the short term. The main contradiction for the current economic operation is still stable growth, and inflation will not be a constraint for policy easing.”For the future trend, Du Bin said.”It is expected that in the second or third quarter, the pork market will transition from a basic balance between supply and demand to a tight balance, and pork prices will enter an upward channel, driving CPI to rise moderately.”The State Council development research Center market economy research institute associate researcher Wang Likun said.The trend of commodity price pass-through to some end consumer goods prices may continue, which is likely to drive consumer goods prices higher.According to the statistics, although the year-on-year increase of PPI in January continued to decline, the 9.1% increase was still at a relatively high level. Moreover, the price of industrial consumer goods in January changed from a 0.5% month-on-month decline to a flat one. The pressure from commodity prices to the prices of some terminal consumer goods cannot be ignored.”High global inflation is likely to remain high for some time, but as monetary policies in major economies shift, the gap between supply and demand tends to narrow, and international commodity prices continue to run out of momentum, inflationary pressure is expected to weaken at the margin.”China Macroeconomic research Institute comprehensive situation research office director Guo Liyan said.Guo Liyan analysis, development of China’s economy continues to recover, abundant supply of industrial and agricultural products and services, fruits and vegetables, and other important people’s livelihood goods LiangYouRou, eggs and milk supply is adequate, such as coal, oil and gas based energy security, to respond effectively to the market price will markedly enhance its capability of the abnormal fluctuations, to keep prices running smoothly in 2022 still has a good support.