From CNBC: 2024-09-08 21:59:24

Vegetable prices in China have surged due to high temperatures and frequent rainfall this summer. China’s consumer price index rose by 0.6% year on year in August, missing expectations. Food prices increased by 2.8%, with pork prices up by 16.1% and vegetable prices up by 21.8%.

The core-CPI, excluding food and energy prices, climbed by 0.3% from a year ago, showing a slower rise for a second-straight month. China’s consumer prices have been subdued due to weak domestic demand post-pandemic. China’s former central bank head Yi Gang emphasized the importance of fighting deflationary pressure.

Retail sales only rose by 2.7% in July, indicating sluggish consumer spending. August’s retail sales and industrial data are awaited. The producer price index fell by 1.8% year on year in August, exceeding the estimated decline of 1.4% as per the Reuters poll. Updates to follow.

Read more: China’s CPI climbs 0.6% in August, missing expectations as transport, home goods prices fall