NBS: China's Feb CPI gains 0.7%, PPI falls 2.7% YoY

China's Consumer Pirce Index (CPI) increased 0.7% on year and rose 1% on month in February, while the domestic Producer Price Index (PPI) fell 2.7% on year and lost 0.2% from January, according to the new data released by the country's National Bureau of Statistics (NBS) on March 9.

In February, China's CPI posted its first positive on-year growth since last September, and its on-month gain was also larger than that in January, Mysteel Global noted. This was mainly supported by the strong consumer demand around the eight-day Chinese New Year (CNY) holiday in mid-February, according to Dong Lijuan, a senior statistician with the NBS.

China CPI

Specifically, Chinese food prices went up 3.3% on month in February, with the prices of fresh vegetables, pork, and fruits rising 12.7%, 7.2%, and 4.3% respectively, NBS data showed. Food consumption expanded during the CNY holiday, while the heavy snow and rains in some regions of the country limited the food supply in the national market in late February, both of which drove up the prices, Dong noted. On a yearly basis, however, the food prices dipped 0.9% overall, according to the data.

Meanwhile, the prices of air ticket, tourism, and movie ticket all posted notable on-month growth in February as people's entertainment consumption leaped during the long holiday, Dong added.

Last month, China's core inflation that excludes food and energy rose 0.5% on month and increased 1.2% compared with February 2023, recording the largest on-year rise for the past two years, NBS data showed.

As for the country's PPI, it continued sliding last month since industrial activities largely ceased during the CNY holiday, Dong explained.

China PPI

China's steelmaking and fabrication industry saw its prices drop 0.4% on month and fall 4.9% on year in February due to the waning ferrous demand, and the prices in the domestic coal mining and processing industry also lost 0.7% on month and slumped 14.7% on year, according to the NBS data.

However, the prices in China's oil and natural gas drilling industry increased 2.5% on month and rose 4.2% on year in the past month, supported mainly by the strengthening of global crude oil prices, Dong noted.

Over January-February, China's CPI stayed unchanged overall compared with the same period last year, while the PPI lost 2.7% on year, according to NBS statistics.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com