The Strategist

China's inflation rate hits 2 per cent in 2022

01/12/2023 - 08:34

According to data issued on Thursday by China's State Statistics Office, the consumer price index (CPI), the major indicator of inflation, increased 2% year over year in 2022.

Chris via flickr
Chris via flickr
Separately, the CPI for urban and rural areas increased 1.8% in December over the prior year. Consumer goods increased by 2.6%, non-food items by 1.1%, food by 4.8%, and services by 0.6%. In terms of monthly changes, the CPI was unchanged in December from November.

In December, the cost of fruits grew by 11% over the previous year, that of vegetables and herbs by 8%, that of eggs by 9.6%, that of aquaculture products by 3.4%, and that of meats, including pig, by 11.6%.

According to the statistics office, the cost of health services rose by 0.6% in December compared to the same period in 2017, while the cost of education, cultural activities, and entertainment increased by 1.4%, transportation and communications costs increased by 2.8%, and the cost of housing decreased by 0.2%.

By the end of 2022, fruit prices in China had increased by 12.9% and fuel costs had increased by 20.9%. The biggest value drop was in pork, which decreased by 6.8% over the course of the year.

China's inflation rate in 2021 was 0.9%, despite the fact that the government had anticipated a rise of about 3%. The CPI was projected by the Chinese government to be about 3% in 2022.