Easing Pork Prices Drag China's CPI Down to 14-Month Low

Easing Pork Prices Drag China's CPI Down to 14-Month Low

Easing Pork Prices Drag China's CPI Down to 14-Month Low

The inflation rate in the Sultanate measured by movement in the average Consumer Price Index (CPI), dropped by 0.96% during May 2020, compared to the same month in 2019, according to the latest data released by the National Centre for Statistics and information (NCSI) on CPI.

The domestic epidemic situation was generally stable in May, and businesses have resumed work, production and operation in an orderly manner.

Meanwhile, its consumer price index rose 2.4% year-on-year in May, less than a 2.7% increase estimated by economists. That was because goods deliveries were temporarily suspended amid the virus outbreak, and because of soaring prices of pork from African swine fever.

The consumer-price index declined 0.1% in May, the Labour Department reported Wednesday.

Gasoline prices dropped 3.5 per cent in May, their fifth straight decrease, and are down 33.8 per cent over the past year.

That was largely due to slowing food prices, which rose 10.6% in May from a year earlier, versus a 14.8% rise in April.

Excluding food and energy, the core CPI rose 1.1 percent year on year in May.

On a month-on-month basis, the headline CPI extended the decline by 0.8 percent last month, compared with the drop of 0.9 percent in April.

Compared with the same period previous year, food prices remained the main driver of consumer inflation in May, while its growth rate tapered from April to 10.6 percent.

The consumer price index declined 0.1 per cent last month, less than analysts expected but a sign that shoppers are continuing to hold back as the world's largest economy grapples with disruptions from the coronavirus pandemic.

"This is the first time this index has ever declined in three consecutive months", the Labor Department said, referring to core prices. "Going forward, expect increased volatility in the coming months - but the medium-term risks to inflation remain firmly to the downside".

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