Consumer prices in China rise for 3 consecutive months

Consumer prices in China in 2024/4 were 0.3% compared to the previous year, compared with market expectations and a 0.1% increase in March.

Consumer inflation continued for the third consecutive month as domestic demand continued to recover despite a weak economic recovery.

Non-food inflation accelerated (0.9% vs. 0.7% in March), clothing (1.6% vs. 1.6%), housing (0.2% vs. 0.2%), health (1.6% vs. 1.5%), and education (1.8% vs. 1.8%).

At the same time, some local governments have recently raised utility bills such as natural gas and railway fares, so transportation costs have risen 0.1% from a 1.3% drop in the previous month.

Food prices continued to fall, falling for 10 consecutive months (-2.7% vs. -2.7%).

Core consumer prices after deducting food and energy prices rose 0.7% from the previous year in April compared to a 0.6% increase from the previous year in March.

On a monthly basis, CPI rose 0.1%, reversing from the 1.0% drop in March, which was the first drastic decline in 3 years.

Source: China National Bureau of Statistics

According to the trading economics global macro model and analysts' forecasts, China's inflation rate is expected to reach 0.80% by the end of this quarter.

According to our econometric model, in the long run, China's inflation rate is predicted to hover around 2.20% in 2025.