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China released February inflation reports with the consumer price index (CPI), which rose by 1.5 percent year on year as expected but under the CPI target for 2019 of 3 percent. The Producer price index (PPI)rose 0.1 percent y/y under the expected 0.2 percent.

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PPI +0.1% y/y under expected +0.2%, unchanged from January +0.1%

China's producer price index increased by just 0.1 percent from a year earlier in February 2019. Significantly but not unsurprising given the economy's weakness it remains unchanged from the January's 28-month low figure.

  • Prices of means of production -0.1% vs -0.1% in January
  • Raw materials -1.5 percent vs -1.6%
  • Processing  Unch at 0.3% 
  • Extraction 1.8% vs 1.2%
  • Consumer goods inflation -0.4% vs 0.6% 
  • Food production Unch at 0.8%,
  • Clothing Unch 1.6%
  • Daily use goods 0.2% vs 0.3%.
  • Cost of consumer durable goods -0.6 vs flat in January.

On a monthly basis, producer prices fell 0.1 percent in February, following a 0.6 percent fall in January and marking the fourth straight month of drop.

Producer Prices Change in China averaged 1.30 percent from 1995 until 2019, reaching an all time high of 13.47 percent in July of 1995 and a record low of -8.20 percent in July of 2009. CPI 1.5% y/y as expected down from January 1.7% CPI 1.0% m/m percent over the previous month.

CPI +1.5% y/y as Expected But down from January +1.7%

China's consumer price inflation index fell to 1.5 percent year-on-year in February 2019 from 1.7 percent in January as expected. This was the lowest inflation rate reported since January 2018. The largest impact was a marked slowdown in food prices. 

The inflation Rate in China averaged 5.18 percent from 1986 until 2019, reaching an all time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999.

China's consumer price inflation on a monthly basis rose 1.0 percent in February, after a 0.5 percent rise in January and above market expectations of 0.7 percent gain. It marked the highest monthly figure in a year, suggesting the low yearly number reflects prior months.

The Inflation Rate Mom in China averaged 0.16 percent from 1996 until 2019, reaching an all time high of 2.60 percent in February of 2008 and a record low of -1.80 percent in June of 1998.

Source: National Bureau of Statistics, Trading Economics

From The Traders Community News Desk

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