The Strategist

Consumer prices in China in January hit the lowest in 14 years

02/09/2024 - 07:13

Consumer prices (CPI) in China fell in January 2024 by the largest annualized 0.8% in over 14 years, according to a study from the People's Republic of China's State Statistical Office (SSO).
Analysts' consensus forecast gathered by Trading Economics indicated a 0.5% decrease in them.

The state’s economy saw deflation at the end of its fourth straight month, the longest stretch since October 2009. The nation's consumer prices decreased by 0.3% in December 2023 and by 0.5% in November of the same year.

The CPI increased by 0.3% in January for the second consecutive month after growing by 0.1% in December.

Last month, non-food prices increased by 0.4%, with apparel prices rising by 1.6%.

Prices for housing increased by 0.3%, for healthcare and education services by 1.3%, and for transportation by 2.4%.

After increasing by 0.6% in December, consumer prices—aside from food and energy—rose by 0.4% in January, the lowest increase since June of previous year.

In response, China's producer prices (PPI) dropped 2.5% annually in January, the lowest level in four months (it had dropped 2.7% in December). The decrease was noted at the conclusion of the sixteenth straight month.