In September, annual inflation in China hit 2.8%, the highest rate for a month in the past two years, according to China’s National Bureau of Statistics. The rise was driven by a sharp rise in food prices, especially pork. Despite the advance, it was below the high of 2.9% predicted by economists consulted by the The Wall Street Journal.
According to them, inflation in China is likely to decelerate in the coming months, largely due to weak economic growth. China is expected to release its GDP product numbers for the third quarter on Tuesday.
The country in the second quarter had seen its weakest growth since the start of the pandemic, as efforts to contain the Covid-19 outbreaks hit activity in Shanghai and other major cities.
Even with the pick-up in September, inflation in China remains within the authorities’ objective of keeping consumer price inflation below the 3% ceiling, and is well below the 8.2% annual inflation rate the US reported. In September.
The Chinese economy is under the pressure of a severe housing recession, a summer drought and a collapse in consumer confidence. Those economic headwinds come as the Chinese Communist Party assembles in Beijing for a congress at which leader Xi Jinping is expected to break recent precedents and secure a third term in power.
Chinese leaders face the challenge of promoting a lasting revival of the economy amid heavy debt, worsening relations with the US and what many economists say is an over-reliance on exports and investment.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.