Consumer price index indicators are out for September and prices have risen by 3.1% year-over-year. The price index separates out rural and city price changes, which were 3.3% and 3.1% respectively. The month-on-month price changes reflected a rise of the same amount, 0.8%, in cities as well as in rural areas leading to an overall increase of .8% for the month of September month-on month.
Food prices accounted for almost 60% of the increase in the price index, rising 6.1% year-on-year. This increase accounted for 1.98% of the year-on-year increase, with vegetables prices up by 18%, meat and poultry up by 6.6% and fresh fruit up by 12.5%. The price of tobacco and liquor, sometimes referred to as vice goods because their consumption is thought to increase when uncertainty is rising, has fallen by .2% year-on year, with liquor falling by .8% and tobacco rising by 0.3% As china continues to build out its infrastructure, the price of communication and transportation also decreased by 0.2% year-on-year, with communication facility costs down by 7%, transportation facilities down by 1.2% and vehicle, vehicle maintenance and fuel costs all up slightly. Month-on-month, the cost of tobacco and Liquor fell by 0.2%, household/maintenance services prices were even at 0.0% and all other indices rose, led by food (1.5%), clothing (1.2%), and recreation/education services (1.0%).