China’s inflation hits six-month high, but trade war not to blame
Heavy rains, swine flu fuel higher food prices as consumer price index accelerates to 2.3 per cent in August
China’s consumer inflation rose to a six-month high last month due to higher food prices brought on by bad weather and an outbreak of swine flu, but the figures showed little direct impact from the trade war with the United States.
A further sharp rise was unlikely unless the swine flu situation worsened considerably, analysts said.
The national consumer price index accelerated to 2.3 per cent in August from 2.1 per cent in July, the National Bureau of Statistics said on Monday.
Food prices were the main driver of the increase, rising 1.7 per cent from a year earlier, and much faster than the 0.5 per cent gain a month earlier. Vegetable prices rose 4.3 per cent as supplies were disrupted by the effect of heavy rains in Liaoning and Jilin provinces, and severe flooding in Shandong province.
Rising oil prices continued to put upwards pressure on the index in August. Petrol prices rose 19.8 per cent from a year earlier while diesel fuel prices jumped 22 per cent, as a weaker yuan raised the price of US dollar-denominated oil and oil product imports.