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1. Food reflation lifts CPI
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The overall CPI reading fell short of the expected 0.71 per cent growth projected by economists polled by Chinese financial data provider Wind.
Vegetable prices rose by over 20 per cent year on year due to extreme weather, which pushed food inflation up from zero per cent year on year to 2.8 per cent, according to Gabriel Ng, assistant economist at Capital Economics.
“Despite a weather-related surge in vegetable prices, a fall in energy prices and core inflation meant CPI only rose a touch,” Ng said.
On a month-on-month basis, China’s inflation in August remained positive after increasing by 0.4 per cent following a 0.5 per cent increase in July, according to the National Bureau of Statistics.