NBS: China's Sept CPI grows 0.4%, PPI loses 2.8% YoY

In September, China's Consumer Price Index (CPI) went up by 0.4% compared to the same month last year but stayed unchanged from August, while the Producer Pirce Index (PPI) dropped by 2.8% on year and 0.6% on month, respectively, according to the data released by the country's National Bureau of Statistics (NBS) on Sunday.

Last month, the on-year growth rate of China's CPI narrowed from that in August, mainly due to the higher base of comparison from September last year, noted Dong Lijuan, a senior statistician with NBS.

China CPI

On a monthly basis, the September CPI reading ended a two-month rise and stood flat, partly under the pressure from the falling prices in the tourism industry, as the travel activity cooled nationwide after Chinese students' summer vacation was over, according to Dong.

For example, the prices for air tickets and hotel accommodation decreased by 14.8% and 7.4% on month respectively in September, the NBS data showed.

Nevertheless, domestic food prices gained 0.8% on month and went up 3.3% on year, driven by higher food consumption brought by people's celebration for the country's Mid-Autumn Festival in the middle of last month, according to the data.

Excluding food and energy, China's core inflation dipped 0.1% on month but climbed 0.1% on year in September, the data showed.

On the other hand, China's PPI slid at a faster rate on year last month, also owing in part to last year's high base, NBS data reflected. The lacklustre industrial demand across the country also exerted downward pressure on the prices, Dong noted.

China PPI

"The strong rainstorm in some regions curbed the demand for ferrous products last month," Dong illustrated. Domestic prices for the steelmaking and fabrication industry in September fell by 3.3% on month and tumbled 11.1% on year, according to NBS data.

Meanwhile, Chinese prices in the coal mining and processing industry lost 1.3% on month and dropped 2.6% on year amid an ample coal supply in the country.

Moreover, the weakening of global oil prices also dragged on energy prices in China, with the prices for oil and natural gas drilling being 3.2% lower on month and slumping 10.1% on year, the data showed.

Over January-September this year, China's CPI gained 0.3% from the same period last year, while its PPI slid 2% on year, according to NBS statistics.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com