Food prices in China have risen sharply this summer, with analysts pointing to high temperatures and frequent rainfall as the main causes.
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BEIJING – China said Monday its consumer price index rose 0.6 percent year-on-year in August, below expectations as costs for transportation, household goods and rents fell.
The consumer price index was expected to rise 0.7% year-on-year in August, according to a Reuters poll.
Food prices rose 2.8% year-on-year in August, the first positive reading since June 2023, according to data from Wind Information. Pork prices rose 16.1% in August, while vegetable prices rose 21.8%.
The core consumer price index, which excludes food and energy prices, rose 0.3% in August from a year earlier, a slower increase for the second straight month.
Consumer prices in China have remained low amid weak domestic demand since the outbreak.
China needs to focus on “fighting deflationary pressures,” former central bank governor Yi Gang said at a conference on Friday, predicting the consumer price index will be slightly above zero by the end of the year.
Retail sales rose just 2.7% in July from a year earlier. Retail and industrial sales data for August are due out on Saturday.
The producer price index fell 1.8% year-on-year in August, more than the 1.4% decline expected in a Reuters poll.
This is a breaking news story. Please check back for updates.
— CNBC's Annick Bao contributed to this report.
