Inflation rate in China 2007-2024
In 2018, the average inflation rate in China ranged at around 2.1 percent compared to the previous year. Projections by the IMF expect the inflation rate to increase gradually to 3 percent until 2023.
Calculation of inflation
The inflation rate is calculated based on the Consumer Price Index (CPI) for China. The CPI is computed 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 product basked is adjusted every five years to reflect changes in consumer preference and has been updated in 2015 for the last time. 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.
China’s inflation in comparison
Among the main industrialized and emerging economies worldwide, China displayed the lowest inflation of emerging countries in 2019. 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 2019, Venezuela is expected to be the country with the highest inflation rate, with a consumer price increase of about 200,000 percent compared to 2018. Eritrea is estimated to have the lowest price increase worldwide with prices actually decreasing by about 27.6 percent.
Calculation of inflation
The inflation rate is calculated based on the Consumer Price Index (CPI) for China. The CPI is computed 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 product basked is adjusted every five years to reflect changes in consumer preference and has been updated in 2015 for the last time. 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.
China’s inflation in comparison
Among the main industrialized and emerging economies worldwide, China displayed the lowest inflation of emerging countries in 2019. 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 2019, Venezuela is expected to be the country with the highest inflation rate, with a consumer price increase of about 200,000 percent compared to 2018. Eritrea is estimated to have the lowest price increase worldwide with prices actually decreasing by about 27.6 percent.
