Prices Rise At Chinese Factory Gates, But Impact Of COVID Outbreak Remains By


© Reuters.

By Gina Lee – China rose year-on-year, and at the fastest pace since May 2019, in January for the first time in a year. Data from the National Bureau of Statistics (NBS) released earlier in the day showed that the Consumer Price Index (CPI) for January rose 1%, against 1% of the forecast prepared by and the growth of the 0.7% December. However, the CPI fell 0.3%, against the expected fall of 0.1% and growth of 0.2% in December. The data also showed that January’s growth was 0.3% year-on-year, less than the forecast growth of 0.4% but improving from the 0.4% drop in December. Although there were still signs of a growth momentum in the world’s second-largest economy, an outbreak of COVID-19 cases in December saw the re-imposition of closures in affected areas and concerns about temporary production disruptions. The outbreak, the worst in the country since March 2020, saw the imposition of measures such as home quarantines and travel restrictions to slow the spread of the virus. The disappointing data also reflected the impact of the measures’ impact on both production and services, including logistics and transportation, ahead of the upcoming Lunar New Year holidays. Other key data sets for January, including trade, industrial production and retail sales, will be combined with February figures and released in March. Therefore, investors will have to wait for more data points against which to measure economic health.

Disclaimer: Fusion Media wishes to remind you that the data contained on this website is not necessarily accurate or in real time. All CFDs (stocks, indices, futures) and Forex prices are not provided by exchanges but by market makers, so prices may not be accurate and may differ from the actual market price, which means that prices are indicative and not appropriate for commercial purposes. Therefore, Fusion Media assumes no responsibility for any business losses you may incur as a result of the use of this data. Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on information, including data, quotes, charts, and buy / sell signals contained on this website. Be fully informed about the risks and costs associated with trading financial markets, it is one of the riskiest investment forms possible.