China consumer inflation up amid food supply concerns as factory-gate prices surge again

China’s official consumer price index (CPI) rose by 1.5 per cent in October from a year earlier, up from 0.7 per cent in September

China’s producer price index (PPI) rose by 13.5 per cent in October from 10.7 per cent in September

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China’s producer price index (PPI) rose by 13.5 per cent in October from a year earlier from 10.7 per cent in September. Photo: Bloomberg

Published: 9:33am, 10 Nov 2021Updated: 11:20am, 10 Nov 2021

China’s consumer prices rose only slightly last month amid public concerns over food shortages, but factory-gate inflation surged to the highest level in 26 years, data released on Wednesday showed.

China’s official consumer price index (CPI) rose by 1.5 per cent in October from a year earlier, up from a rise of 0.7 per cent in September, the National Bureau of Statistics (NBS) said.

This was above the Bloomberg survey median, which had predicted a rise to 1.4 per cent. Beijing has set a 2021 CPI growth target of around 3 per cent, compared with around 3.5 per cent last year.

“In October, CPI rose under the combined influence of inclement weather, a contradiction between supply and demand of some commodities, and rising costs,” said senior NBS statistician Dong Lijuan.

Last week, China’s Ministry of Commerce told local authorities to stabilise food supply and prices – including for vegetables, meat and cooking oil – in preparation for the coming cold months.

This led to some cases of panic-buying, but authorities were quick to reassure the public there was no need to worry about shortages.

China’s core consumer inflation rate, excluding volatile food and energy prices, rose by 1.3 per cent in October compared with a year earlier, up from a rise of 1.2 per cent in September.