China inflation rate rises on higher food prices

Vendors carrying food items in China Rising consumer prices have been a concern for Chinese policymakers in recent past

Related Stories

Consumer prices in China rose more than forecast in September, fuelled mainly by a surge in food prices.

Prices rose 3.1% during the month, from a year earlier, up from 2.6% in August, the National Bureau of Statistics said.

The bureau said that food prices rose 6.1% from a year ago due to the impact of national holidays, as well as droughts and floods in some regions.

Some analysts said that rising prices had reduced the chance of any major monetary policy moves by Beijing.

"The rise of consumer price index (CPI) inflation leaves little room for policy easing," said Zhiwei Zhang, an economist with Nomura.

He added that prices were likely to rise further and that there was a risk the rate of inflation could even be above the government's 3.5% target for some months in 2014.

'Downward pressures'

China, the world's second-largest economy, has been trying to recover from a recent slump which has seen its growth rate slow for two quarters in a row.

Its economy expanded by 7.5% in the April-to-June quarter from a year earlier - down from a growth rate of 7.7% in the previous three months.

There have been concerns that its growth rate may slow further in the coming months, not least because of a slowdown in demand for Chinese exports from key markets such as the US and Europe.

While there have been some indications in recent weeks that its growth may be on the mend, data released over the weekend triggered concerns over whether the recovery was sustainable.

China's exports, a key driver of its growth, fell 0.3% in September from a year earlier, indicating that external demand continues to remain fragile.

Zhou Hao, an economist with ANZ in Shanghai, said the weak export numbers show that "the economy faces some downward pressures".

Meanwhile, imports rose a more-than-forecast 7.4% from a year ago.

More on This Story

Related Stories

More Business stories

RSS

Features

  • Pro Israel activists hold a banner reading 'Against Anti-Semitism and hate of Israel' at a demonstration as part of Quds Day in Berlin, Germany, 25 July 2014'Rising tide'

    Do statistics support claims that anti-Semitism is increasing?


  • Police respond to a shooting in Santa MonicaTrigger decision

    What really happens before a police officer fires his gun?


  • Child injured by what activists say were two air strikes in the north-eastern Damascus suburb of Douma (3 August 2014)'No-one cares'

    Hope fades for Syrians one year after chemical attack


  •  Marina Silva speaks during a press conference in Brasilia on 4 October, 2013. Humble origins

    Marina Silva - from rubber tapper to Brazilian presidential candidate


From BBC Capital

Programmes

  • Traffic lightsClick Watch

    From hacking cars to traffic lights - behind the scenes at a cyber-security conference

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.