Five institutes predict a 5.0% growth of February’s CPI

The National Bureau of Statistics will release February’s Consumer Price Index (CPI) and Producer Price Index (PPI) next week.
Currently, five institutions have made predictions on the data. According to the projections, the minimum year-on-year growth rate of the CPI is 4.0%, and 5.4% is the highest, which average 5.0%. As for PPI, the minimum year-on-year growth rate is -0.2%, and the maximum

The National Bureau of Statistics will release February’s Consumer Price Index (CPI) and Producer Price Index (PPI) next week.

Currently, five institutions have made predictions on the data. According to the projections, the minimum year-on-year growth rate of the CPI is 4.0%, and 5.4% is the highest, which average 5.0%. As for PPI, the minimum year-on-year growth rate is -0.2%, and the maximum is 0.1%, which average -0.08%.

In January, the CPI of fresh vegetables, pork, and fresh fruits has risen respectively by 15.3%, 8.5%, and 5.5% from the previous month. The average pork price released by the Ministry of Agriculture in February fluctuated slightly around 49 yuan/kg and 50 yuan/kg.

Compared to last year’s low pork prices, the year-on-year growth rate looks quite high. Nevertheless, due to state intervention by mobilizing resources to restrain price fluctuation, pork prices have been controlled to some extent after the Spring Festival.

The chief economist at Industrial Bank said that the hindered transportation of produce is another reason that raises the prices of vegetables and pork in February, while the prices of refined oil have dropped. As a result, although the CPI in February is expected to be lower than that in January, it may still have a high level of 5.0% growth rate.

As for PPI, the slow resumption of work causes extensive steel inventories, and the transportation slump causes a decline in the demand for crude oil, which also brings down the steel and oil prices. Therefore, its growth rate in February may fall to -0.2%.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/06/06/five-institutes-predict-a-5-0-growth-of-februarys-cpi/.

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