On Wednesday the National Statistic Bureau in China released their increased CPI data. The numbers were increasing for about 2.1 percent. It was for the April month of this 2022.

That was beyond the economist forecast for a 1.8% increase and also higher than a period before that. There are some causes which trigger this situation. 

The examples are like the logistic distribution which is annoyed. That comes as the impact of lockdown made in several cities in China because of the increasing coronavirus case in that country. 

The late logistic chain supports the increasing many food prices up to 1.9%. This situation must be handled as soon as possible by finding the right solution. 

The Commodities Prices make Everything is Worse

The condition explained above was worsened, especially caused by the commodity price increase at the international market. All parties have been taken some actions to make sure the availability of stocks. 

Besides that, they also want to stabilize the prices too. An analysts said that coronavirus lockdown caused a panic buying amidst the people. Somehow, it has a direct effect to some foods’s prices. 

It means that the prices are higher or more expensive than before. A lot of people keep so many foods at home such as potatoes, eggs, and fresh fruits. That is why; the effects are real. 

These three foods are having a higher price right now. Each of them are raising by 8.8%, 7.1%, and 5.2%. This situation is not good for those who don’t have enough money everyday.

Some Groceries Actually Go Down in Price

Based on a report from the market, some groceries are not getting more expensive. Vice versa, they are now cheaper than before. The example is pork which is declining by 3.3% for yearly period in April. 

Elsewhere, the PPI is slowing down and economic growth is also another focus to know. The National Statistic Bureau in China also released their producer’s inflation data or it is also known as PPI. 

That PPI increased by 8.0% yearly in April. If it was compared to a 8.3% raise noted in March, the PPI number this time is overriding. However, it is not a big thing which needs to be awared of.

Generally, the producer inflation is still near the highest multi year level. The sharp increase of world commodity price because of the pandemic and east Europe conflict has been triggering a concern about inflation. 

The Stability Must be Maintained Properly Amidst the Pandemic

This concern is happened globally and it also push the economic growth in so many countries in the world, including China. When the economic sector in that country was slowing down, demand may have the same condition.

That can happen in several months ahead. Inflation in the future will no longer become an attention for the policy makers because the main challenge is not that. That was stated by an expert.

The maim challenge now is how to maintain the stability between handling omicron pandemic and stabilizing the economic growth. This aim can be reached with a huge effort. 

Commodity Dollar was also Slumped in the Market

Elsewhere, the commodity dollar is experiencing the worst decline because of a strengthening greenback. That makes the declining commodity and price of equity happened.

The AUD / USD and NZD / USD slumped for about 0.9% since the beginning of a trade this day. Meanwhile, the USD / CAD is consolidating at it’s highest range since the end of 2020.

The EUR / USD currency pair continues to maintain their support area around the level of 1.0500. Some European Central Bank officials have been stating their desire to increase the deposit interest rate. 

However, that ECB rate hike expectation is covered by The Fed Aggresive action, USD appreciation, and don’t forget about a recession threat in the Europe continent.