China: Inflation slows in June
July 9, 2014
In June, consumer prices fell 0.1% over the previous month, which contrasted the 0.1% increase recorded in May. The monthly decline mainly reflected lower prices for food.
Annual inflation fell from 2.5% in May to 2.3% in June. The print slightly undershot the 2.4% that market analysts had expected. As a result, the trend now points downward, with annual average inflation inching down from the previous month’s 2.6% to 2.5% in June.
Meanwhile, the producer price index fell 1.1% over the same month last year in June (May: -1.4% year-on-year), which marked the highest level since April 2012. That said, the print exceeded the 1.0% drop that market analysts had expected. As a result, the annual average variation of the producer price index inched up from minus 1.8% in May to minus 1.7% in June, which marked the highest rate since November 2012.