Inflation in China fell significantly in February. Compared to the same month last year, consumer prices increased by 1.0 percent, as the national statistics office announced on Thursday in Beijing. In January, prices rose even more sharply by 2.1 percent. Analysts had expected a slowdown to 1.9 percent.
Food prices also rose much more slowly than in the previous month. Above all, pork, which is very popular in the People’s Republic, became less expensive. Fuel and service price inflation also eased. In a month-on-month comparison, total consumer prices fell by 0.5 percent.
The declining price pressure gives the Chinese central bank and the political leadership leeway to support the economy and the weakening real estate market with additional measures. On the other hand, the development is limiting the inflationary thrust that China is exerting on the global economy. Due to its high export share, the price development in the second largest economy in the world can be transferred to other countries via trade. (dpa)