China inflation slips but stays high on virus, food worries

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China inflation slips but stays high on virus, food worries
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People wearing protective masks buying vegetables in Hangzhou in China's eastern Zhejiang province.

People wearing protective masks buying vegetables in Hangzhou in China's eastern Zhejiang province. Consumer prices in China rose at their highest rate in more than eight years, official data showed Feb 10, with inflation more than expected on the back of Lunar New Year demand and a deadly virus outbreak. - AFP

However, the factory prices fell and observers warned of further drops as global demand for Chinese goods is battered by the spread of the disease. The National Bureau of Statistics also said medical goods had seen a rise as officials grappled with the coronavirus, which has infected more than 80,000 people and killed more than 3,000. The price of disinfection products increased 14.8 per cent from January.

The producer price index -- a barometer of the industrial sector that measures the cost of goods at the factory gate -- fell 0.4 per cent, slightly more than expectations of a 0.3 per cent drop.

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