| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | -0.1% | -0.3% | |
| Year over Year | 0.1% | 0.7% | 0.3% |
Highlights
China's headline consumer price index increased by just 0.1 percent on the year in April, down from 0.7 percent in March and falling short of the consensus forecast of 0.3 percent. This is the weakest inflation rate since February 2021 and suggests that demand pressures remain subdued after public health restrictions were lifted late 2022. The index fell 0.1 percent on the month after dropping 0.3 percent previously.
The fall in headline CPI inflation in April was largely driven by a smaller increase in food prices, up 0.4 percent on the year after a previous increase of 2.4 percent. Core inflation, in contrast, was steady at 0.7 percent in April. PMI surveys also indicated that price pressures were subdued in April.
The fall in headline CPI inflation in April was largely driven by a smaller increase in food prices, up 0.4 percent on the year after a previous increase of 2.4 percent. Core inflation, in contrast, was steady at 0.7 percent in April. PMI surveys also indicated that price pressures were subdued in April.
Market Consensus Before Announcement
Forecasters see a 0.3 percent year-over-year rate in April versus 0.7 percent in March. China's CPI has come in below Econoday's consensus the last six reports and has not exceeded the consensus since July last year.
Definition
Consumer Price Index (CPI) is an index that measures changes over time in the price level of consumer goods and services purchased by residents, which reflects the overall changes in price level.
Description
Consumer prices account for a majority of overall inflation, which is carefully monitored by investors worldwide. Investors worldwide monitor Chinese price changes closely. A pickup in inflation could mean an increase in interest rates is in the offing from the People's Bank of China while an easing could mean looser monetary policy. The monthly CPI is broken down by 8 categories with more detail available on the following day including aggregate information by urban and rural areas and provinces.
The CPI measures the change in the level of prices for a specified basket of goods and services normally purchased by urban and rural residents. Approximately 226 areas throughout the country are covered, including 80 counties and 146 cities. The current CPI is an annually chained Laspeyres price index and has been available since 2001. From 1978 to 2000, the index was compiled using current year weights for most items.
The CPI measures the change in the level of prices for a specified basket of goods and services normally purchased by urban and rural residents. Approximately 226 areas throughout the country are covered, including 80 counties and 146 cities. The current CPI is an annually chained Laspeyres price index and has been available since 2001. From 1978 to 2000, the index was compiled using current year weights for most items.
