The Consumer Price Index (CPI) went up 2.4% in February. That’s the biggest increase in the past three years.
The main reason for the increase is the rise in prices of fruit, vegetables, and appliances. The price of food has gone up 8.45%. In the past 42 months, vegetable prices have gone up 81% while fruit has gone up 15%.
The main reason for the spike in February is the cold weather in January which led to a decrease in the supply of vegetables. That coupled with the increase in demand during the Chinese New Year led to much higher prices.
The government’s statistics office says that if fruit, vegetables and energy prices are not taken into account, the core CPI has increased by 0.82%. So the CPI is more stable than it appears but many are feeling the pinch of higher food prices.
In February, the Wholesale Price Index (WPI) dropped 0.25% from last month and 4.8% from a year ago. The WPI has been falling for the past 18 months which signifies a decrease in costs.
The office also said the Import Price Index has dropped 6.55%. If currency rates are taken into account, the price has dropped 11.56% in US dollars. The drop is mainly due to fall in prices of mineral products, metal, chemical and other industrial products.