Snapshot of Chinese inflation is lower

Feb. 27 (UPI) -- At a time when supply issues are weighing on the mind of oil investors on the global market, China said one of its measures of inflation was lower.

The consumer price index, a main gauge of inflation, is forecast to grow by about 1.4 percent in February, well below the annual target range of 3 percent, the Chinese Bank of Communications reported.

According to the official Xinhua News Agency, food prices are moving lower and dragging on the CPI. Annually, the report put CPI up 2.5 percent year-on-year in January, up from the 2.1 percent in December

China is a lead economy alongside the United States and its economic metrics could influence crude oil prices. Crashes on the Chinese stock market early last year triggered a short downturn in crude oil prices, which were already on their way to historic lows in an over-supplied market.

China's benchmark Shanghai Composite Index was down 0.76 percent at the close Monday.

China's gross domestic product improved over the fourth quarter, though growth was the result of activity outside traditional strength in the industrial sectors. China's economy overall is expected to expand by 6.2 percent this year, after 6.7 percent last year.

Economists at the Organization of Petroleum Exporting Countries expected Chinese oil demand for 2017 at 11.64 million barrels per day, down 2.4 percent from the fourth quarter, but up 2.3 percent from full-year 2016 if estimates are accurate.

That compares with estimated demand of 20.1 million bpd from the United States in 2017. China and the United States account for about 30 percent of the total expected world oil demand this year.

The latest estimate from S&P Global Platts of Chinese apparent oil demand, which measures the amount moving through domestic refineries against net imports, was 2.3 percent higher in December when compared with last year.

When using official government data, apparent oil demand last year declined 0.8 percent as the economy moved from a quantitative growth phase to a qualitative one.