China: Inflation remains low in June
July 9, 2015
In June, consumer prices were flat over the previous month, which was up from the 0.2% drop tallied in May. The monthly reading mainly reflected that a sharp increase in prices for tobacco and liquor was offset by falling prices for food, clothing and transportation.
Annual inflation rose from 1.2% in May to 1.4% in June. The print slightly overshot the 1.3% that market analysts had expected. As a result of the low inflation results tallied since mid-2014, the trend continued to point downward in June, with annual average inflation falling from May’s 1.6% to 1.5% and marking the lowest rate since June 2010.
Meanwhile, the producer price index fell 4.8% in June over the same month last year (May: -4.6 year-on-year), which exceeded the 4.6% decline that market analysts had expected. The annual average variation of the producer price index inched down from minus 3.0% in May to minus 3.3% in June, which represented the lowest value since February 2010.