Prices continued to decline on a yearly basis for the seventh straight month to 6.4% from 6.5%, the smallest increase since October 2021. However on a monthly basis, inflation rose by 0.5% from 0.1% in December.
The declines last month, in line with economists’ expectations, resulted from declines in used car prices and medical care. But price increases for shelter and energy prevented headline inflation in Tuesday’s consumer price index report from falling further.
The data comes after last month’s surprising jobs report found that employers hired 517,000 new workers, well exceeding economists’ expectations.
Americans have been struggling with high prices for over a year now, resulting in a decline in the real value of their income despite historic wage increases. High inflation has also amplified the risk of a recession.
Core CPI
Core CPI, a measure of inflation that strips away volatile food and energy prices, rose last month by 0.4% from December’s 0.3% increase….
2023-02-14 08:46:03
Original from finance.yahoo.com
Figures released by the National Bureau of Statistics (NBS) in China on January 11, 2021, show that the Consumer Price Index (CPI) inflation for the country for January 2021 has slowed to a five-year low of 6.4%. This slowing of inflation compared to December 2020, where the CPI rate was 6.5%, suggests that the Chinese economy may be stabilizing in 2021.
At the same time, however, the NBS also reported that the monthly inflation rate rose from 0.2% in December to 0.5% in January. This rise was largely driven by an increase in food prices which rose to 9.3% year-on-year in January, up from 8.2% in December. The increase in food prices was especially pronounced for pork, which saw a whopping 57.1% rise year-on-year due to supply constraints following the outbreak of African swine fever last year. The NBS also reported increases in prices for fruits and vegetables, up 11.6% and 3.2%, respectively.
On the other hand, there were some signs of slowing in the inflationary pressure. The prices of motor vehicles, electronics, home appliances and clothing all fell in January compared to December. The prices of communications equipment and transportation services also saw declines compared to a year ago.
Overall, the latest CPI figures suggest that while inflation remains at a low, manageable level, prices of certain food items have risen due to supply-side issues which naturally leads to a marginally higher rate of inflation on a monthly basis. The Chinese government is expected to continue to monitor inflation trends and take steps to ensure that it remains at a stable level in 2021.
