Monday Markets Mail #KW 2

on 11th of January 2021

Inflation in China picks up slightly after a decline

© Adobe Stocks
© Adobe Stocks
  • According to the Beijing Bureau of Statistics, year-on-year inflation was 0.2 %
  • Experts had explained the deflationary development mainly with the decline in pork prices
  • As China's corona crisis is considered largely over and consumption picks up, consumer prices pick up again
Beijing (APA) - After a rare drop last month, consumer prices in China rose slightly again in December. The statistics bureau reported in Beijing on Monday that inflation was 0.2 per cent year-on-year. For the first time in eleven years, consumer prices had declined in November. Experts had explained the deflationary trend mainly with the decline in pork prices, which account for a strong share of the consumer price index in China.
 
After the outbreak of African swine fever in China, supplies plummeted last year. Prices skyrocketed. But the situation has eased again in recent months, which is why prices fell again. Since the corona crisis in China is also considered to be largely overcome and consumption is picking up, consumer prices are picking up again after the unusual decline.