China’s CPI climbs 0.6% in August, missing expectations as transport, home goods prices fall

In China, vegetable prices have risen significantly this summer due to high temperatures and frequent rainfall. The consumer price index increased by 0.6% year on year in August, lower than expected. Food prices went up by 2.8%, with pork prices surging by 16.1% and vegetable prices by 21.8%. The core-CPI, which excludes food and energy prices, rose by 0.3%. Former central bank head Yi Gang warned of deflationary pressure and predicted the consumer price index would be slightly above zero by the end of the year. Retail sales only rose by 2.7% in July, and industrial data for August is awaited. The producer price index fell by 1.8% year on year in August.