Today: November 26, 2024
August 9, 2024
1 min read

Chinese consumer prices rise more than expected in July

Chinese consumer prices rise more than expected in July

The consumer price index (CPI) rose 0.5 percent in July from a year earlier, compared with a 0.2 percent increase in June, the National Statistics Office (ONE) reported on Friday, exceeding the 0.3 percent rise expected in a Reuters poll of economists.

Core inflation, which excludes volatile food and fuel prices, rose 0.4% in July, down from 0.6% in June. Month-on-month, the CPI rose 0.5%, compared with a 0.2% drop in June and an expected 0.3% rise.

High temperatures and rain in some areas last month pushed up food prices, partly contributing to the monthly recovery in growth, according to Dong Lijuan, a statistician with the NSO.

Weak domestic demand has emerged as one of the economy’s main weak points, while hopes for an export-led recovery have also been dampened by rising trade tensions with the West, tariffs on Chinese goods and fears of a US recession.

Consumers have largely shunned incentives to revive consumption as the prolonged housing recession, job insecurity and the debt wall of local governments prevent them from buying especially big-ticket items.

Auto sales, the largest component of China’s retail sales, fell for a fourth straight month in July despite a nationwide car trade-in program and easing of lending rules for the sector.

China’s capital Beijing recorded a 6.3 percent drop in retail sales in June, while the financial hub of Shanghai saw consumption decline 9.4 percent, below the national rise of 2 percent, official data showed.

The Producer Price Index (PPI), meanwhile, fell 0.8% in July compared to a year earlier, unchanged from the previous month and compared to the expected 0.9% drop.

Chinese leaders pledged in late July that stimulus measures needed to meet this year’s economic growth target would target consumers, days after announcing the allocation of 300 billion yuan ($41.96 billion) in ultra-long-term Treasury bonds to finance equipment upgrades and consumer goods swaps.



Source link

Latest Posts

They celebrated "Buenos Aires Coffee Day" with a tour of historic bars - Télam
Cum at clita latine. Tation nominavi quo id. An est possit adipiscing, error tation qualisque vel te.

Categories

Elderly woman dies after being hit by a van in Huancayo
Previous Story

Elderly woman dies after being hit by a van in Huancayo

cubanet-cuba-avion-brasil
Next Story

Plane with 62 people on board crashes in Brazil

Latest from Blog

Go toTop