SHANGHAI: Shanghai’s Consumer Price Index, the main gauge of inflation, grew 2.3 percent from a year earlier in May, slower than April’s 2.6-percent rise, the Shanghai Statistics Bureau said yesterday.
The slowdown was in line with the national CPI trend, which eased to a growth of 1.2 percent last month from 1.5 percent in April.
Food costs in Shanghai gained 1.8 percent last month, also slower than the 3.3-percent gain in April, due to an abundant supply. But housing prices grew 4.3 percent, faster than the pace of 3.8 percent a month earlier.
“Shanghai’s consumer prices remained steady,” said Li Hui, a researcher with the bureau. “But the prices may pick up in the following months as tobacco tax rose and tourism spending is expected to climb” during the summer school holiday.
In the first five months, Shanghai’s consumer prices gained 2.4 percent to become the second highest of all Chinese provinces and municipalities after Qinghai Province.
Meanwhile, China still faces deflationary pressure due to insufficient domestic demand and a slowing economy, but the situation creates more room for the authorities to roll out more easing policies, according to market observers.
Shanghai’s gross domestic product grew 6.6 percent from a year earlier in the first quarter, slower than China’s 7-percent pace during the same period and 0.4 percentage points below the city’s growth last year.
