China’s CPI grew slower than expected China’s CPI inflation in December fell to an annual rate of 2.5 percent, down from 3 percent in November. This can be partially explained by lower food price inflation, which fell from an annual rate of 5.9 percent in November to 4.1 percent in December.

Source: Shanghai Daily, January 9, 2014 Think about inflation in China:

What happened to the prices of non-food items between November and December?

How does China’s core inflation rate compare to its CPI inflation rate?

Given the fall in food prices, do you anticipate any bias in China’s CPI?

Did China’s CPI increase or decrease between November and December?