China’s CPI Growth at 1.7% in First Half, Full Year Inflation Expected to Hit 3%

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China’s state planning authority has highlighted comparatively lower inflation levels in the first half of 2022, giving it room to achieve a target of full year consumer price index (CPI) growth of 3%.

“Since the start of the year, international energy and food prices have greatly increased, and major economies in North America and Europe have seen persistently high inflation,” said National Development and Reform Commission (NDRC) official Wan Jinsong (万劲松) at a press conference held on 14 July.

“In recent months CPI growth [in these areas] has exceeded 8%, hitting 40 year highs, while US CPI growth for June was 9.1%.

“China’s prices, however, have continued to remain within a rational range, with first half average CPI rising 1.7%, for growth markedly lower than other major economies, providing a sharp contrast to international inflation.”

The NDRC said that it expects to achieve its full year CPI growth target of around 3%.