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China inflation rises to 3.1% year-on-year in September

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(Globalpost/GlobalPost)

Chinese inflation rose sharply to 3.1 percent in September, a seven-month high, the National Bureau of Statistics (NBS) said Monday.

The rise in the consumer price index (CPI), a main gauge of inflation, was an increase from the 2.6 percent logged in August and ahead of market expectations of 2.9 percent in a poll by Dow Jones Newswires.

A spike in food prices was the main driver of the increase, and authorities blamed national holidays in late September and early October, along with floods and drought in some areas.

Cooling temperatures with the onset of autumn, rising travelling costs and a hike in fuel prices were also factors, NBS analyst Yu Qiumei said in a statement.

In the first nine months of the year, CPI was at 2.5 percent year-on-year, the NBS said.

China's producer price index (PPI), which measures goods prices at the factory gate, rose 0.2 percent month-on-month in September, according to the NBS.

It edged up from 0.1 percent in August, which was the first increase in six months and came after five months of deflation in producer prices.

The PPI figure "shows that market demand is becoming more active and the macro economy is stabilising and rebounding", Yu said.

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http://www.globalpost.com/dispatch/news/afp/131014/china-inflation-rises-31-year-year-september