NBS: China's Sept CPI falls 0.3%, PPI down 2.3% YoY

China's Consumer Price Index (CPI) in September dropped by 0.3% compared with the same month last year, though from August it increased 0.1%, while the country's Producer Price Index (PPI) slid by a smaller 2.3% on year and continued to stay unchanged on month, according to the latest data released by the country's National Bureau of Statistics (NBS) on Wednesday.

China's CPI performance picked up last month, and its on-year drop also narrowed compared with that recorded for August, driven mainly by the rising prices of food and consumer goods, according to Dong Lijuan, a senior statistician with NBS.

For example, domestic food prices climbed 0.7% from the previous month, with the prices of fresh vegetables, eggs, and fruits rising 6.1%, 2.7%, and 1.7% on month, respectively, NBS data showed. The food prices dropped 4.4% on year, though.

Also, Chinese prices of clothing increased by 0.8% on month as consumers made seasonal purchases for the coming autumn, and the prices of recreational durables, household appliances and household groceries ticked up by 0.9%, 0.6%, and 0.6% on month respectively.

In contrast, travel-related prices, such as airfares and hotel accommodation, declined from August, mainly due to the end of students' summer vacation and the fact that this year's Mid-Autumn Festival fell in October.

Excluding food and energy prices, China's core inflation in September stood unchanged on month and gained 1% on year, NBS data showed.

Meanwhile, China's PPI stood flat for two months straight by September, and it's on-year decline slowed as well, underpinned by the improved industrial demand, according to Dong.

Last month, Chinese prices of coal mining and processing went up 2.5% from August, though on a yearly basis the prices slumped 16.8%, according to NBS data. The prices in the steelmaking and fabrication industry edged up 0.2% on month but dipped 0.6% on year.

However, the weakening of global oil prices placed downward pressure on Chinese oil prices, Dong noted. In September, the prices of oil and natural gas drilling slid 2% on month and fell 8.6% on year, NBS data showed.

During January-September this year, China's CPI dipped 0.1% compared with the same period last year, while its PPI slipped 2.8% on year, according to NBS statistics.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com