Inflation denotes the increase of price levels over a certain period of time. The level of inflation is expressed in the inflation rate, which is an important indicator of economic development and is hence closely scrutinized by decision makers in public and private entities. Inflation rates may refer to any kind of prices, but most commonly used are inflation rates related to prices for consumer goods and services, as these prices reflect the cost of living for the average population.
The consumer price index in China
National inflation rates are commonly based on the Consumer Price Index (CPI) of the respective country. The CPI is an economic indicator that measures changes over time in the price level of a representative basket of consumer goods and services for a defined population and geographic region. The Chinese Consumer Price Index is calculated by the National Bureau of Statistics of China on a monthly and annual basis. It covers the prices of goods and services of 268 basic divisions grouped into eight categories, which represent the living consumption of urban and rural residents.
Over the last two decades, the inflation rate in China ranged at a low and stable level, averaging 2.4 percent annually. This was the lowest level of inflation of all BRIC countries and differed only moderately from the inflation rates of developed countries. However, since accounting methods vary, the low Chinese inflation figures may not adequately display the rise in cost of living felt by many people living in China’s fast-growing cities and urban areas.
Recent development of consumer prices
When looking at the recent development of consumer prices, inflation picked up in 2021, reached a turning point at 2.8 percent in September 2022, and eased thereafter. Same as with global inflation, price increases were mainly driven by rising costs for fuels and raw materials, with inflation spreading to food prices during 2022. However, inflation rates in China were considerably lower than in other major economies in 2022. As economic recovery after COVID-19 was sluggish, consumer prices even developed deflationary tendencies during 2023. In 2024, inflation in China is expected to remain low due to limited demand.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
FAQs
Consumer Price Index CPI in China increased to 103.60 points in August from 103.20 points in July of 2024. Consumer Price Index CPI in China averaged 102.49 points from 2021 until 2024, reaching an all time high of 104.20 points in February of 2024 and a record low of 100.20 points in June of 2021.
Does China have a good inflation rate? ›
The Consumer Price Index shows the price development for private expenses based on a basket of products representing the consumption of an average consumer household. Compared to other major economies in the world, China has a moderate and stable level of inflation.
What is the CPI in China today? ›
China Consumer Price Index is at a current level of 100.60, up from 100.50 last month and up from 100.10 one year ago. This is a change of 0.10% from last month and 0.50% from one year ago.
What is the cause of consumer inflation in China? ›
Causes of Chinese inflation
Monopoly enterprises make monopoly prices of certain products to get exceptional profits (Ren and Song, 2009) at the same time generating price increase for some basic raw materials. These factors, taken together, add up to a serious inflationary trend.
What is consumer price index and inflation? ›
The CPI measures inflation as experienced by consumers in their day-to-day living expenses; the Producer Price Index (PPI) measures inflation at earlier stages of the production and marketing process; the Employment Cost Index (ECI) measures it in the labor market; the Bureau of Labor Statistics' International Price ...
What is the inflation target in China? ›
HONG KONG -- China should increase the intensity of its macroeconomic policies and stick to an inflation goal of 2% to 3%, an adviser to the central bank has argued, echoing calls by experts for more stimulus to prop up demand.
What country has the best inflation? ›
Of the major developed and emerging economies, China had the lowest inflation rate at 0.2 percent in June 2024. On the other end of the spectrum, the inflation rate in Russia stood at close to nine percent.
How does China control inflation? ›
The PBOC can print yuan as needed, although this can lead to high inflation. However, China has tight state-dominated controls on its economy, which enables it to control inflation differently compared to other countries. In China, changes are made to subsidies and other price control measures to check inflation.
What is the US inflation rate? ›
US Inflation Rate (I:USIR)
US Inflation Rate is at 2.53%, compared to 2.89% last month and 3.67% last year. This is lower than the long term average of 3.28%. The US Inflation Rate is the percentage in which a chosen basket of goods and services purchased in the US increases in price over a year.
Which country has the lowest inflation rate? ›
The Chinese Consumer Price Index is calculated by the National Bureau of Statistics of China on a monthly and annual basis. It covers the prices of goods and services of 268 basic divisions grouped into eight categories, which represent the living consumption of urban and rural residents.
What is the current CPI today? ›
US Consumer Price Index is at a current level of 314.12, up from 313.53 last month and up from 306.19 one year ago. This is a change of 0.19% from last month and 2.59% from one year ago.
Why is there no inflation in China? ›
China's low inflation shows a disinflationary process, propelled by a robust supply side recovery, coupled with sluggish consumer demand linked to the property market downturn, relatively lower wage growth and weak manufacturing exports. China stands out as an outlier amid the recent global surge in inflation.
What is the highest inflation rate in China? ›
Inflation Rate in China averaged 4.66 percent from 1986 until 2024, reaching an all time high of 28.40 percent in February of 1989 and a record low of -2.20 percent in April of 1999.
What explains inflation in China? ›
Overall, the paper confirmed the hypothesis that inflation in China is largely driven by excess money supply, and is correlated with changes in food price level. However, the findings are subject to various limitations of the paper, such as data quality, econometric technics, and model sophistication.
What is the CPI basket of China? ›
The current CPI basket comprises eight categories - food, tobacco, and alcohol; clothing; housing; daily necessities and services; transportation and communications; education, culture, and entertainment; healthcare; and other supplies and services.
What is Russia's inflation rate? ›
Consumer price inflation in Russia averaged 7.2% in the ten years to 2022, below the Eastern European average of 7.7%. The 2022 average figure was 13.8%.
Which country has the highest inflation rate? ›
As of August 2024, the countries with the current highest inflation rates are Argentina (271.5%), Venezuela (51.4% %), Turkey (61.78%) and Sudan (146.6%).
What is the inflation rate for consumer prices? ›
| Related | Last | Reference |
|---|
| Consumer Inflation Expectations | 3.00 | Aug 2024 |
| Inflation Rate YoY | 2.50 | Aug 2024 |
| Inflation Rate MoM | 0.20 | Aug 2024 |
| PCE Price Index | 123.38 | Jul 2024 |
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