Chinese inflation is heating up

Photo by China Photos/Getty Images

Chinese inflationary pressures accelerated sharply in February, suggesting that disinflationary forces may be ebbing.

According to the National Bureau of Statistics, consumer prices rose by 2.3% from 12 months earlier, easily beating expectations for an increase of 1.9%.

Not only was it well above the 1.8% annual pace reported in January, it was the sharpest annual increase seen since July 2014.

While consumer price inflation took off, at least compared to recent standards, downstream price pressures remained all but non-existent.

From a year earlier producer price inflation fell 4.9%, in line with expectations. While producer prices have now fallen in annual terms for 48 straight months, the figure marked the slowest pace of deflation since June 2015.

More to follow…

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