Despite the rise in consumer prices in China to 7-month peak in September, economists argue that inflation does not pose a risk to the second largest economy in the world.
The consumer price index rose by 3.1 % in the ninth month, exceeding forecasts of experts for an increase of 2.8%. A month earlier the indicator grew by 2.6%.
Reported by the meter growth was mainly due to changes in food prices, in particular vegetables, as well as the strong demand in the autumn – period traditional with the delays on deliveries to the country. Food prices rose with 6.1% in September, compared with growth of 4.7 % in the previous month.
" I'm not worried, as core inflation remains quite low. Previously we had such price changes because of the prices of vegetables. These movements are short-lived," said an economist for China at Royal Bank of Scotland Louis Kyuis.
Economists expect China's inflation to remain around the target level of 3.5% in the coming months, while taking into account the low probability the People's Bank of China to make significant changes in monetary policy.
"We expect the consumer price inflation to expand further in the fourth quarter, but the chance to exceed 3.5% is still small," said Lu Ting and Zhu Syaodzya, economists for China in Bank of America Merrill Lynch.
Meanwhile, producer prices in the country continued the collapse in September, reflecting mainly the stabilization of the value of commodities in the international markets. The producer price index fell by 1.3 % in the ninth months to retreat from 1.6% in August.