| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Month over Month | 0.7% | 0.0% | ||
| Year over Year | 0.5% | 0.1% | 0.5% | 0.4% to 0.5% |
Highlights
China's headline consumer price index rose 0.5 percent on the year after advancing 0.1 percent in December. The index rose 0.7 percent on the month after no change previously. Producer price inflation data also published today showed ongoing weakness in price pressures. Changes in inflation in January partly reflect the impact of the timing of lunar new year holidays, which took place mid-February last year, but which started in late January this year.
Today's data were in line with the consensus forecast for a year-over-year increase of 0.5 percent in the CPI. The China RPI and RPI-P fell from minus 8 to minus 22 and from minus 8 to minus 41 respectively, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Today's data were in line with the consensus forecast for a year-over-year increase of 0.5 percent in the CPI. The China RPI and RPI-P fell from minus 8 to minus 22 and from minus 8 to minus 41 respectively, indicating that recent Chinese data in sum are now coming in below consensus forecasts.
Market Consensus Before Announcement
CPI is expected to pick up to show a year on year increase of 0.5 percent for January, propelled by Lunar New Year demand, after barely rising by 0.1 percent in December.
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.
