China: Inflation hits nine-month high in July
August 9, 2015
In July, consumer prices rose 0.3% over the previous month, which was up from the flat reading tallied in June. The monthly reading mainly reflected that a sharp increase in prices for food as well as for recreation, education and culture articles more than offset a fall in prices for clothing.
Inflation rose from 1.4% in June to 1.6% in July. The print slightly overshot the 1.5% that market analysts had expected and represented the highest reading since October 2014. As a result of the increase, the trend stabilized in July, with annual average inflation remaining at the previous month’s 1.5%.
Meanwhile, the producer price index fell 5.4% in July over the same month last year (June: -4.8 year-on-year). The print exceeded the 5.0% decline that market analysts had expected and represented the sharpest drop since October 2009. The annual average variation of the producer price index decreased from minus 3.3% in June to minus 3.7% in July, which represented the lowest value since February 2010.