Monthly inflation rate in China May 2022

In May 2022, the monthly inflation rate in China ranged at 2.1 percent compared to the same month in the previous year, remaining flat from 1.5 percent in the previous month. Inflation has picked up recently, although it is still on a moderate level. The annual average inflation rate in China ranged at 0.9 percent in 2021.

China’s inflation in comparison

The term inflation means the devaluation of money caused by a permanent increase of the price level for products such as consumer or investment goods. The inflation rate is most commonly measured by the Consumer Price Index. The Consumer Price Index shows the price development for private expenses based on a basket of products representing the consumption of an average consumer household. Compared to other major economies in the world, China has a moderate and stable level of inflation. The inflation in China is on average lower than in other BRIC countries, although China enjoys higher economic growth rates. Inflation rates of developed regions in the world are still generally lower than in China.

Regional inflation rates in China

In China, there is a regional difference in inflation rates. As of April 2022, Shanghai municipality and Jilin province experienced the highest CPI growth, while Yunnan province and Xinjiang autonomous region reported the lowest. In recent years, inflation rates in rural areas have often been slightly higher than in the cities. According to the National Bureau of Statistics of China, inflation was mainly fueled by a surge in transport sector prices in recent months. The price gain in other sectors was relatively slight. Food prices decreased slightly recently, but had increased significantly in 2019 and 2020.