Inflation in China grows at the fastest pace since April 2020.

In September 2022, the growth rate of consumer prices increased significantly. The last time this was seen was in April 2020. In general, the economy is suffering from the consequences of COVID-19 and the decline of the real estate market. The economy needs to be eased to support it, but since the rise in consumer prices is mainly driven by higher food prices, there are some limitations.

There are several reasons why one of the world's largest economies barely grew in the second quarter, but only recovered. First, the prolonged restrictions caused by the pandemic had a strong impact. Second, a sharp decline in the real estate market, and third, a significant drop in exports.

On Friday, the National Bureau of Statistics (NBS) published data stating that the consumer price index (CPI) increased by almost three percent compared to the previous year, or more precisely by 2.8%. It’s worth noting that back in August the figure was 2.5%. At the same time, the producer price index (PPI) increased by 0.9%, although the growth of 1.0% was predicted.