China CPI Slows More than Expected in September 2015

China’s consumer price index (CPI) rose 1.6% in September 2015 compared with a year earlier, the country’s National Bureau of Statistics (NBS) said.

That was lower than analysts’ forecasts of 1.8%, and down from the rate of 2% recorded in August 2015.

Producer prices fell for a 43rd straight month as manufacturers cut prices to win business.

The latest inflation figures added to fears of a rapid slowdown in China, the world’s second largest economy.

Photo Reuters

Asian markets were all lower in response to the inflation figures, which came a day after data that showed imports fell for an 11th straight month in September.

China’s producer price index (PPI) fell 5.9% in September 2015 from a year earlier, matching the rate of decline in August, which marked the biggest fall since the financial crisis.

Non-food consumer inflation was even lower with an annual growth rate of just 1% in September, the NBS data showed.

The easing CPI was mainly due to a high comparison base last year, Yu Qiumei, a senior NBS statistician, said.

CPI rose 0.5% month-on-month in September 2014, compared to a 0.1% growth last month.

Reflecting growing strains on Chinese companies from persistently weak demand and overcapacity, manufacturers continued to cut selling prices to win business.

China has already launched a wave of economic stimulus measures since late 2014, including cutting benchmark interest rates five times since November, but some analysts believe the moves have been less effective than when the economy was more tightly controlled, exports were strong and debt levels were much lower.

Weak producer prices are also threatening to erode the profits of Chinese companies and add to their debts, something analysts expect to continue for the remainder of the year.

The inflation figures come as trade data on October 13 showed imports tumbled for the 11th month in a row in September, as result of weaker global commodity prices and lower demand. Exports also fell for a third month, although by less than expected.

Other surveys showed activity in China’s factory sector shrank in September on fewer new orders, sparking fears the Chinese economy may be slowing down more rapidly than expected.

China will release gross domestic product (GDP) data for Q3 of 2015 on October 19. Many economists expect the three months to September to show economic growth fell below the government’s target of 7% for the first time since the financial crisis.

Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Spain: At Least 158 Killed In The Country’s Worst Flooding Disaster

At least 158 people have died in Spain's worst flooding disaster in generations. On October…

2 days ago

Russia Fines Google $20,000,000,000,000,000,000,000,000,000,000,000, Surpassing Global GDP

Google has been fined two undecillion (a two followed by 36 zeroes) roubles by a…

2 days ago

Financing Your Home Remodel: 7 Tips for Success

Embarking on a home remodel is an exciting journey, promising enhanced comfort, increased property value,…

2 weeks ago

Donald Trump Serves Up McDonald’s Fries While Kamala Harris Celebrates 60th Birthday with Church Choir

The US presidential candidates continued to campaign across key swing states on October 20. Footage…

2 weeks ago

America PAC: Elon Musk Promises to Award $1M Each Day to Swing States Voters

Elon Musk has said he will give away $1 million a day to a registered…

2 weeks ago

Canada Expels 6 Indian Diplomats Amid Khalistan Row

India and Canada have decided to expel their top envoys along with other diplomats as…

3 weeks ago