Crop Loss Extreme Weather 

China’s Inflation Hits Six-Month High — Driven by Surge in Food Prices due to Extreme Weather

China’s consumer inflation rose to a six-month high last month driven by a surge in food prices caused by extreme weather and an outbreak of swine flu. The figures showed little direct impact from the trade war with the United States.

The national consumer price index (CPI) unexpectedly jumped to 2.3% in August from 2.1% in July, the National Bureau of Statistics said on Monday.

Food prices were the main driver of the leap, rising 1.7% from last year, and much faster than the 0.5% gain a month earlier.

China’s CPI surprise signals the largest increase since February, driven up on the back of a 9% rise in vegetable prices as supplies were disrupted by heavy rains in Liaoning and Jilin provinces, and severe flooding in Shandong province.

The severe cold snap northern regions are currently experiencing will likely impact September’s inflation figures.

Stay tuned for updates.

GSM

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