Inflation rate in China – additional information
The Consumer Price Index for China is calculated using a product basket that contains a predefined range of products and services on which the average consumer spends money throughout the year. Included are expenses for groceries, clothes, rent, power, telecommunications, recreational activities and raw materials (e.g. gas, oil), as well as federal fees and taxes. The inflation rate is then calculated using changes in the CPI.
As the inflation of a country is seen as a key economic indicator, it is frequently used for international comparison. Among the main industrialized and emerging economies worldwide, China had displayed the lowest inflation of emerging countries in 2013. Nevertheless, it still ranged marginally above the inflation rates of established industrialized powerhouses such as the United States or the European Union.
According to IMF estimates for 2014, Belarus is expected to be the country with the highest inflation rate, with a consumer price increase of almost 30 percent compared to 2012. Greece is estimated to have the lowest price increase worldwide with prices actually decreasing by about 0.25 percent.