China: Inflation reaches an over two-year low in June
July 9, 2012
In June, consumer prices added 2.2% over the same month last year, which was below both the 3.0% increase registered in May and the 2.3% rise expected by the market. In fact, the June print represents the lowest inflation figure since January 2010. Owing to the softer rise, annual average inflation eased from 4.7% in May to 4.4% in June. The deceleration observed in June was mainly due to lower food inflation, which moderated from 6.4% in May to 3.8%, as well as for transportation and communication. The producer price index fell 2.1% over the same month last year in June, following the 1.4% drop observed in May. The reading represents the lowest rate since October 2009. As a result, annual average producer price inflation slowed further, falling from 3.0% in May to 2.3% in June.