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China's CPI up 3.2% in Feb

Mar. 9, 2012 (China Knowledge) - China's consumer price index (CPI), the major gauge of inflation, increased 3.2% year on year in February, reflecting the lowest level in one year, according to statistics released by the National Bureau of Statistics (NBS) today.

The CPI growth last month was lower than the 4.5% increase in January and 4.1% increase in December.
Last month, China saw its CPI drop 0.1% from January.  

The CPI in urban areas rose 3.2% year on year in February, while the CPI in rural areas increased 3.2% year on year, according to the statistics.
The NBS said food prices went up at a slower growth of 6.2% year on year last month, driven by a 5.4% increase in grain prices, 12.9% rise in the prices of meat, poultry and processed products and 6.5% increase in the prices of fresh vegetable. The price of pork jumped 15.9% year on year last month, which contributed 0.50 percentage points to the overall CPI growth last month, but the prices of fresh eggs fell 10.6% year on year.  Non-food prices rose 1.7% year on year in February.  
The prices of tobacco products, alcohol and related products climbed 3.7% year on year, mainly driven by an 8.7% increase in alcohol prices, while the prices of household appliances and maintenance services edged up 2.5% from a year earlier.

The price of personal and health care products increased 2.7% year on year in February, while the price of clothing rose 3.8%.

There was an increase of 0.1% in the prices of transportation and communications, and an increase of 2.1% in housing costs that were driven by 1.7% increase in the prices of water, electricity and fuels, 2.3% increase in the prices of building and decoration materials and 2.5% rise in housing rentals.

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