egetable prices in China have risen significantly this summer, with analysts pointing to high temperatures and frequent rainfall as the main reasons.
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BEIJING — China on Monday reported its consumer price index rose by 0.6% year on year in August, missing expectations as costs of transportation and home goods, and rents declined.
The consumer price index was forecast to have climbed 0.7% year on year in August, according to a Reuters poll.
Food prices climbed by 2.8% year on year in August, the first positive print since June 2023, according to Wind Information data. Pork prices surged by 16.1% in August, while vegetable prices climbed by 21.8%.
Core-CPI, which strips out food and energy prices, climbed by 0.3% in August from a year ago, a slower rise for a second-straight month.
Consumer prices in China have remained subdued amid lackluster domestic demand since the pandemic.
China’s former central bank head Yi Gang said at a conference on Friday that the country needed to focus on “fighting the deflationary pressure.” He forecast the consumer price index would be slightly above zero by the end of the year.
Retail sales rose by just 2.7% in July from a year ago. Retail sales and industrial data for August are due out Saturday.
The producer price index fell by 1.8% year on year in August, more than the estimated 1.4% decline as per the Reuters poll.
This is a breaking news story. Please check back for updates.
— CNBC’s Anniek Bao contributed to this report.