China: Inflation hits six-month low in July
August 9, 2016
In July, consumer prices rose 0.2% over the previous month, which contrasted the 0.1% decrease tallied in June. The reading, which marked a five-month high, mainly reflected higher prices for fresh vegetables and education as well as for other articles and services.
Inflation edged down from June’s 1.9% to 1.8% in July, which was in line with market expectations. The print represented the lowest reading since January 2016. Inflation is still well below the government’s 3% ceiling for the year. Annual average growth in consumer prices stabilized at June’s 1.9% in July.
Meanwhile, the producer price index fell 1.7% in July over the same month last year, which represented the slowest year-on-year decline in 23 months. The print was above both June’s 2.6% decline and the 2.0% drop that the markets had expected. The annual average variation of the producer price index inched up from June’s minus 4.9% to minus 4.6% in July.
Author: Luis Lopez Vivas, Economist