China Inflation Rate

China's annual inflation rate unexpectedly was at 0.8% in August 2021, compared with market consensus and July's figure of 1%. This was the lowest figure in five months, amid a steeper decline in cost of food with pork prices dropping faster. Also, cost of non-food slowed (1.9% vs 2.1% in July), with inflation mainly easing for transportation & communication (5.9% vs 6.9%) while prices rose further for clothing (0.5% vs 0.4%); household goods and services (0.6% vs 0.3%); and education, culture (3% vs 2.7%). Inflation for rent, fuel & utilities (1.1% vs 1.1%) and health (0.4% vs 0.4%) was steady. Beijing has set a 2021 CPI growth target of around 3 percent, compared with 3.5 percent last year. On a monthly basis, consumer prices rose by 0.1% in August, missing forecasts of 0.5% and after a 0.3% rise in July.