Chinese inflation accelerates slightly on higher food prices

The NBS reports May consumer prices were up 2.7 % y-o-y, slightly higher than the 2.5 % rise registered in April. The pick-up in inflation was mainly due to sharp increases in prices of fruit and pork products (the spread of African swine fever virus has caused pork prices to jump in China). Food prices overall were up 7.7 % last month.

Producer price inflation slowed to 0.6 %, which puts pressure on corporate earnings and profitability.

Chinese price trends

Source: Macrobond.