| Actual | Previous | Consensus | |
|---|---|---|---|
| Month over Month | -0.2% | -0.2% | |
| Year over Year | 0.0% | 0.2% | 0.3% |
Highlights
China's total consumer price index was unchanged on the year in June after rising 0.2 percent in May, reflecting slow recovery in domestic demand. It was weaker than the consensus forecast of a 0.3 rise. Transportation and communication prices continued to post a sharp drop, which was offset by higher costs for food, health care and education. The index fell 0.2 percent on the month for the fifth consecutive monthly drop after dipping 0.2 percent previously.
The Econoday Consensus Divergence Index stood at minus 64, well below zero, which indicates the Chinese economy is performing much worse than expected. Excluding the impact of inflation, the index was at minus 70.
The pace of increase in consumer prices in the first six months of the year decelerated slightly to 0.7 percent from 0.8 percent for the January-May period. China has set a CPI growth target at 3 percent for 2023.
The Econoday Consensus Divergence Index stood at minus 64, well below zero, which indicates the Chinese economy is performing much worse than expected. Excluding the impact of inflation, the index was at minus 70.
The pace of increase in consumer prices in the first six months of the year decelerated slightly to 0.7 percent from 0.8 percent for the January-May period. China has set a CPI growth target at 3 percent for 2023.
Market Consensus Before Announcement
After May's very subdued and as-expected 0.2 percent annual rate, June is expected to see a nearly as subdued 0.3 percent rate. China's CPI has not exceeded Econoday's 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.
