China’s Inflation Eases to 12-Month Low in February, Core Inflation Rises to 7.8%

China’s consumer inflation eased in February to a 12-month low, while its factory-gate prices showed an annual fall for a fifth month, official data showed on Thursday.[0] The consumer price index rose 1% last month from a year earlier, the National Bureau of Statistics said Thursday, the lowest level since February 2022, and well below estimates.[1] Core inflation which is less volatile decreased to 0.6% from 1%, and producer prices remained in a state of deflation, decreasing by 1.4%.[2]

The Bangko Sentral ng Pilipinas (BSP) said inflation likely settled within a range of 8.5 to 9.3 percent in February.[3] In November 2008, inflation reached a peak of 9.1 percent, the highest it had been since then.[3]

Michael Ricafort, the chief economist of Rizal Commercial Banking Corporation, stated that there is a possibility that inflation has reached its highest point in the first quarter and may then decline gradually. Emilio S. Neri, Jr., the Lead Economist of Bank of the Philippine Islands (BPI), has expressed his belief that inflation may have already reached its peak and will decelerate in the upcoming months.

The cost of food increased by 2.6 percent in February from what it was a year prior, a decrease from the 6.2 percent in January.[4] In January, prices of pork, a key ingredient in Chinese cuisine, rose by 11.8 percent, but have since decreased to a 3.9 percent surge.[4] The prices of potatoes, fresh fruit, eggs, and poultry all decreased from the increases reported in January, with drops of 14.4 percent, 8.5 percent, 7.9 percent, and 6.4 percent respectively.[4]

According to National Statistician Dennis Mapa, transport inflation decreased to 9 percent with a decrease in the gas prices from 9.6 percent to 3.8 percent, diesel from 30.5 percent to 14.2 percent, and motorcycles from 3.5 percent to 2.7 percent.[5]

Core inflation, which excludes volatile food and energy prices, rose to 7.8 percent in February from 7.4 percent the previous month.[6] Core inflation was last seen as high as 8.2 percent in December 2000, the highest since then.[5]

Governor Yi Gang of the People’s Bank of China declared last week that inflation will stay within bounds in 2023, and that interest rates are suitable – indicating that monetary policy will likely stay unchanged.[2] He indicated that there are further measures to bolster the economy, noting that the reduction in the reserve requirement ratio continues to be effective.[1]

0. “China's Consumer Inflation Eased in February” MarketWatch, 9 Mar. 2023,

1. “China's Consumer Inflation Slows as Demand Eases Post-Holiday” Yahoo News, 9 Mar. 2023,

2. “Inflation cools to 4% range for 1st time in 10 months” 코리아타임스, 6 Mar. 2023,

3. “Inflation seen below 9% in February”, 5 Mar. 2023,

4. “China's CPI up 1% in February –” China Daily, 9 Mar. 2023,

5. “Inflation eases for 1st time in 6 months” BusinessWorld Online, 7 Mar. 2023,

6. “Inflation to ease as food, fuel prices fall” Bangkok Post, 7 Mar. 2023,

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