Chinese inflation remained stable in January, bucking a long-established pattern of a spike in prices ahead of the country’s New Year holiday.
Consumer prices rose 2.5 per cent from a year earlier, the same as in December. The reason for the more moderate inflation pressure compared with the normal seasonal rhythm were subdued food prices in the lead-up to the New Year’s celebration.
But the reasons given by analysts for flat food prices were as varied as the dishes on a Chinese banquet table. They included: unusually warm weather, ample pork production, slowing economic growth, a strong renminbi and quieter New Year’s festivities in response to President Xi Jinping’s campaign against extravagance.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.