China’s monetary policy easing did not spike inflation last month, with both consumer and producer price growth falling short of expectations and deflationary pressures continuing to bite.
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The consumer price index (CPI), a key gauge of inflation, grew by 0.4 per cent year on year in September, compared to an increase of 0.6 per cent in August, the National Bureau of Statistics (NBS) said on Sunday.
The reading fell short of the expected 0.7 per cent growth projected by economists polled by Wind.
The growth was largely driven by food prices, which grew 3.3 per cent year on year last month, including a 22.9 per cent jump in vegetable prices and a 16.2 per cent increase in pork prices.
However, home appliance prices dropped 2 per cent from a year earlier, housing rents were down 0.4 per cent, while the price of vehicles dropped 5.3 per cent amid large supply.
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Prices of Chinese new energy vehicles, which face high tariffs in the United States, the European Union and Canada, dropped 6.9 per cent year on year.