Consumer price inflation/Index of China scaled to 2.7 per cent year-on-year in June 2013 pushed by a 4.9 per cent rise in food prices.
As per the National Bureau of Statistics, subsequent to falling of Consumer price inflation to 2.1 per cent in May 2013 the CPI rose to 2.7 per cent in June led by 9.7 per cent year-on-year rise in fresh vegetable prices.
Important things to Remember
• Consumer inflation had climbed to a 10-month high of 3.2 per cent year-on-year in February but fell to 2.1 per cent in March and 2.4 per cent in April 2013.
• On the other hand, the producer price index, which trails the wholesale inflation, dropped 2.7 per cent year-on-year in June 2013.
• The Government aims to keep the annual consumer inflation at about 3.5 per cent after reporting 2.6 per cent last year.
• China witnessed weaker-than-expected economic growth of 7.7 per cent in the first quarter of this year, and many analysts expect the second-quarter growth to slow further to about 7.5 per cent.
• The annual economic growth of China fell to 7.8 per cent in 2012, the slowest since 1999.
What is Consumer Price Index?
A consumer price index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is basically a statistical estimate formulated using the prices of a sample of representative items whose prices are collected periodically. Sub-indexes and sub-sub-indexes are computed for different categories and sub-categories of goods and services, being combined to produce the overall index with weights reflecting their shares in the total of the consumer expenditures covered by the index. It is one of several price indices calculated by most national statistical agencies.