Shenzhen Sees a Decrease in Inflation Rates
Inflation rate in Shenzhen have decreased last year compared to 2013 based on statistic reports that was released by the Shenzhen survey office of the National Bureau of Statistics. The CPI or consumer price index which is the main gauge of inflation have risen 2.8 percent last year compared to 2013.
The growth is 2.6 percent lower even with the growth in 2012 from 2013. Even with this year’s decrease, local inflation was still 0.2 percent higher in 2012 compared to the national average. Among the 36 large and medium sized cities in the mainland, Shenzhen is ranked 17th based on CPI growth. The low inflation was a result of several factors and there was insufficient external demand due to Europe economic recession and a sluggish economy in America. But the domestic economic growth have slowed which lead in the increase in production cost and decreased profit along with a declining currency supply which weakened the driving force of the price hikes.
Last year the consumer product index increase was a result of rising food prices which rose 4.5 percent compared to 2011. Plus an infectious disease in southern China killed many pigs which reduced pork supply and pushed pork prices up. And local prices of vegetables have also increased 9.5 percent.
The highly varied weather help pushed the rising costs of plants and transportation which directly affected vegetables prices in Shenzhen which is heavy dependent on the external market for its supply of fresh vegetables.