Data published by the National Bureau of Statistics (NBS) showed that the consumer price index rose by 0.6% per annum in August after an increase of 0.5% per annum in July. Economists had expected inflation to accelerate to 0.7% per annum. Still, it was the highest print since February. On a monthly basis, the CPI increased by 0.4%, slowing down compared to July (+0.5%). Consensus estimates suggested an increase of 0.5%. Core CPI, deducting food and energy costs, increased by 0.3% per annum in August, recording the weakest increase since March 2021.
The data also showed that producer prices continued to decline in August, as Beijing maintained efforts to reinvigorate domestic demand. The producer price index fell by 1.8% per annum versus expectations for a decline of 1.4% following the 0.8% drop a month earlier. It marked the 23rd straight month of producer deflation and the highest figure since April. On a monthly basis, the producer price index fell by 0.7% (the largest decline in 14 months) after a 0.2% decline in July. Meanwhile, since the beginning of the year (through August), producer prices have fallen by 1.9%.