BEIJING: Chinese consumer prices rose unexpectedly in April compared to a month ago, a sign the recent surge in producer inflation was beginning to trickle down to the consumer level. Beijing’s official consumer price index (CPI) edged up 0.1% from March, after falling 0.3% the previous month, the National Bureau of Statistics said in a report on Wednesday. Analysts in a median estimate called for no change compared to March. Compared to a year ago, CPI inflation climbed 1.2%, following a 0.9% increase the previous month.
Headline annual inflation has slowed sharply in recent months, a potentially ominous sign for the world’s second-largest economy, which has defied the odds with its steady economic expansion over the past four quarters. Despite the slowdown in the headline rate, core consumer prices remain relatively steady. Analysts also say the headline rate is well within the central bank’s target rate. A separate gauge of factory-gate prices slowed sharply in April. The annual producer price index (PPI) rose 6.4% following a 7.6% gain the previous month. The PPI inflation index surged 7.8% in the 12 months through February, the fastest since the financial crisis. After years of contraction, producer prices have been dragged higher by fiscal policies and efforts to reduce the country’s overcapacity issues. PPI inflation has been largely driven by mining and heavy industry, with raw materials registering double-digit percentage gains.
