Chinese Consumer Prices Spike Most In 5 Years As Food Costs Soar

Yuan is tumbling after Chinese Consumer prices spiked 2.9% YoY in February - the biggest jump in inflation since Nov 2013.

Consumer prices jumped 1.2% MoM and 2.9% YoY (considerably higher than the 2.5% jump expected).

The biggest driver of the price surge being food (something few can do without) which soared 4.4% - the biggest jump since June 2016.

 

On the other hand producer prices rose less than expected, up 3.7% YoY in Feb (vs 3.8% exp and 4.3% in Jan)...

 

With China's credit impulse slowing (if not reversing) and food inflation soaring, we suggest those who are hoping for more easing from China (which is actively pitching itself as managing leverage and derisking) not hold their breath for too long.

And the Yuan is selling off...

Comments

roddy6667 Fri, 03/09/2018 - 05:10 Permalink

More chart porn nonsense. I live in China and I check the prices on everything. It's a habit from my frugal days of saving up for retirement. I don't buy anything without comparing prices. I have a very good memory for numbers. Being retired, I have the time to go to a different store or market to save one kwai. I have not seen any price increases in food lately. I call bullshit on this article.

ZLYman roddy6667 Fri, 03/09/2018 - 20:41 Permalink

@roddy - I agree, I have lived in Fushun, China since Jan 2015 after I retired and married my Chinese wife.  Beef 26.5 yuan ($4.21) per 500 grams (1.1 lbs.) just before Chinese new year (Feb 16).  My wife agrees, food prices are NOT up.  Most articles here are pretty accurate about China, this article, not so much.  My father taught me the value of money (It was gold backed in my youth).  He (1906-1989) could rub the Buffalo off an Indian head nickel because he was SO frugal.  Are you buying any foods from TaoBao.com or JD.com?  Can save more than one kwai (1 Yuan) there most of the time.  Of course not fresh meat or vegetables, but the other necessities.

In reply to by roddy6667