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China inflation hits highest level in 15 months

AFP  |  Beijing 

in rose to its highest level in more than a year in May driven by surges in and fruit prices caused by the African swine fever epidemic and bad weather, official data have shown.

But while prices are increasing, demand remains weak because of the trade war with the and economic uncertainty.

The consumer price index (CPI) -- a key gauge of retail -- hit 2.7 percent, the (NBS) said, compared with 2.5 percent in April and the highest since February 2018.

The data was in line with a forecast of analysts polled by

The rise was "largely the result of renewed acceleration in food price inflation", and supply disruptions caused by African swine fever, said in a note.

Millions of pigs have been culled recently as the disease cuts through and beyond, devastating global and impacting prices from the of Hong Kong to US dinner tables.

The price of pork soared 18.2 percent in May, China's NBS said. The price of fresh fruit on-year was up 26.7 percent as bad weather hammered supplies.

Beijing's official statistics say around one million pigs have been killed since the first outbreak in August -- but that is widely considered to be an underestimate.

The price index (PPI), an important indicator of domestic demand, hit 0.6 per cent in May, from 0.9 per cent the previous month.

Economic "growth could slow further on escalating US-trade tensions", said in a note.

"We expect to undertake further easing/stimulus measures to bolster confidence and to stabilise growth."

US is expected to meet China's Xi Jinping at the summit in this month to discuss the long-running trade row, but US has warned that it will not be a stage for a "definitive agreement".

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 12 2019. 11:45 IST
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