China: Inflation steady in July
August 9, 2013
Consumer prices increased 2.7% over the same month last year in July, matching the result tallied in June. The print slightly undershot market expectations of a 2.8% rise. According to the statistical office, the reading mainly reflects higher prices for food (specifically fresh vegetables and meat) as well as housing and clothing. The trend in consumer prices ticked up in July, with annual average inflation rising from 2.2% in June to 2.3%.
Meanwhile, the producer price index fell 2.3% over the same month last year in July, which was up from the 2.7% drop tallied in June. July's decrease exceeded the 2.1% market analysts had expected.
The government expects that inflation will average 3.5% this year. FocusEconomics Consensus Forecast participants anticipate inflation to average 2.8% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, the panel sees inflation rising to 3.3%.