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China inflation grows over expectactions

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China’s consumer prices grew by 2.3 percent in February with an increase of 0.5 percent from January, shows official data.

The reading beat expectations as economists from the Bank of Communications and China Merchants Bank forecast a 1.8 percent increase in February, Xinhua news agency reported.

The consumer price index (CPI), an inflation measure ruler, grew 1.6 percent monthly, the National Bureau of Statistics (NBS) said.

Food prices, which account for one-third of the CPI calculation, zoomed 7.3 percent yearly while non-food inflation increased by 1 percent.

Pork prices rised by 25.4 percent yearly, contributing to 0.59 percentage point of CPI growth, while vegetable prices increased by 30.6 percent, accounting for 0.86 percentage  growth.

NBS statistician Yu Qiumei said that vegetable and pork prices increased due to supply shock during a cold in February and demand for pork and transportation rose around the Lunar New Year holiday, while service prices had increased along with labour charges.

China’s Producer Price Index (PPI),wholesale inflation measurer, dropped for the 48th successive month to 4.9 percent yearly in February, narrowing from the 5.3 percent drop in January and 5.9 percent in December of 2015. Monthly producer prices in February edged down 0.3 percent.

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