China consumer inflation turns positive in August

China's consumer inflation recovered in August after dropping into negative territory in the previous month for the first time in more than two years, official data showed on Saturday.

China's consumer price index, a main gauge of inflation, rose by 0.1 percent year-on-year in August, up from a 0.3 percent decline in July, according to data released by the National Bureau of Statistics.

Dong Lijuan, an NBS statistician, said China's consumer inflation turned positive in August with continued recovery in the consumer market and improvement in demand and supply.

The improvement in CPI was led by non-food prices, which posted a rise of 0.5 percent compared to a year earlier after a flat reading in July. Prices for services increased by 1.3 percent in August, up from a 1.2 percent rise in July.

In August, food prices dipped 1.7 percent year-on-year, flat with the July reading. The price of pork - a staple meat in Chinese cuisine - dropped by 17.9 percent in August after a 26 percent decline in July.

On a month-on-month basis, July's CPI surged 0.3 percent, up from a 0.2 percent rise in July.

The growth in core CPI, which excludes volatile food and energy prices and is deemed a better gauge of the supply-demand relationship in the economy, rose by 0.8 percent year-on-year in August.

Meanwhile, China's producer price index, which gauges factory-gate prices, was down 3 percent from a year earlier in August after the 4.4 percent annual contraction seen in July, the NBS said.

On a month-on-month basis, the PPI rose by 0.2 percent in August after a 0.2 percent dip in July, according to the NBS.

Dong said the year-on-year decline in PPI has narrowed due to factors including improved demand for some industrial products and the international oil price spikes.

ouyangshijia@chinadaily.com.cn