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Consumer Price Index (CPI) in China as of June 2018, by sector and area

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China: Consumer Price Index (CPI) in China by sector and area June 2018 The graph shows the Consumer Price Index (CPI) in China as of June 2018, by sector and area. That month, the CPI for food in urban areas had resided at 101.1 index points.
Consumer prices in China – additional information

The Consumer Price Index (CPI) is an economic indicator that measures changes in the price level of a representative basket of consumer goods and services. It is calculated by taking price changes for each item in the market basket and averaging them. Goods and services are weighted according to their significance. The CPI can be used to assess the price changes related to the cost of living. It is also useful for identifying periods of inflation and deflation. A significant rise in CPI during a short period of time denotes inflation and a significant drop during a short period of time suggests deflation.

Annual projections of China’s inflation rate forecast by the IMF estimate a relatively low increase in prices up until 2018. The implications of low inflation are two-fold for a national economy. On the one hand, price levels remain largely stable which may lead to equal or increased spending levels by domestic consumers. On the other hand, low inflation signifies an expansion slowdown of the economy, as is reflected by China’s gross domestic product growth.

In 2014, consumer prices in China have risen slowly but steadily. By comparison, producer prices have fallen constantly, as is shown by the monthly producer price index (PPI). The deflation trend in the PPI reflects deepening price cuts of crude oil, refined oil and steel in China. It also denotes possible structural overcapacity in some manufacturing sectors.
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Description Source More information
The graph shows the Consumer Price Index (CPI) in China as of June 2018, by sector and area. That month, the CPI for food in urban areas had resided at 101.1 index points.
Consumer prices in China – additional information

The Consumer Price Index (CPI) is an economic indicator that measures changes in the price level of a representative basket of consumer goods and services. It is calculated by taking price changes for each item in the market basket and averaging them. Goods and services are weighted according to their significance. The CPI can be used to assess the price changes related to the cost of living. It is also useful for identifying periods of inflation and deflation. A significant rise in CPI during a short period of time denotes inflation and a significant drop during a short period of time suggests deflation.

Annual projections of China’s inflation rate forecast by the IMF estimate a relatively low increase in prices up until 2018. The implications of low inflation are two-fold for a national economy. On the one hand, price levels remain largely stable which may lead to equal or increased spending levels by domestic consumers. On the other hand, low inflation signifies an expansion slowdown of the economy, as is reflected by China’s gross domestic product growth.

In 2014, consumer prices in China have risen slowly but steadily. By comparison, producer prices have fallen constantly, as is shown by the monthly producer price index (PPI). The deflation trend in the PPI reflects deepening price cuts of crude oil, refined oil and steel in China. It also denotes possible structural overcapacity in some manufacturing sectors.
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Release date
July 2018
Region
China
Survey time period
as of June 2018
Supplementary notes
According to the National Bureau of Statistics, the "Consumer Price Index (CPI) is an index measuring changes over time in the price level of consumer goods and services purchased by residents, which comprehensively reflects the changes of price level. Consumer Price Index (CPI) covers the prices of goods and services of eight categories and 262 basic divisions which cover the living consumption of urban and rural residents, including food; tobacco, liquor and articles; clothing; household facilities, articles and maintenance services; health care and personal articles; transportation and communication; recreation, education, culture articles and services and residence. Data are collected from 63,000 prices collection units in 500 cities and counties of the 31 provinces (autonomous regions and municipalities), which cover grocery stores, department stores, supermarkets, convenience stores, professional markets, franchise houses, shopping centers, open fairs and service consuming units etc."

The source does not provide an exact publication date. Date given here is the date of data access.

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