Staff sort fruits at a Walmart in Beijing, China, September 23, 2019. Picture taken September 23, 2019. REUTERS/Tingshu Wang/File photo
In July, China experienced its first annual decline in consumer prices in more than two years, indicating a sluggish economy due to weak demand, according to data released on Wednesday by the National Bureau of Statistics (NBS). The consumer price index (CPI) for the month decreased by 0.3 percent compared to the previous year, slightly lower than the Reuters poll’s median estimate of a 0.4 percent decrease. This decline in consumer prices was the first since February 2021, following an unchanged CPI in June.
Factory gate prices, as measured by the producer price index (PPI), also continued to fall for the 10th consecutive month, dropping 4.4 percent year-on-year after a 5.4 percent decrease in the previous month. This decline was slightly higher than the forecasted fall of 4.1 percent.
China’s economic recovery has slowed down after a strong start in the first quarter, as both domestic and international demand weakened. To support the economy, authorities have implemented various policy measures, with more expected in the future.
The decrease in consumer prices raises concerns about deflationary pressures, exacerbated by ongoing property downturns and declines in imports and exports.
READ: White-collar wage cuts in China fuel deflation risks, hurt consumption
Despite these concerns, authorities have downplayed the risk of deflation. Liu Guoqiang, deputy governor of the central bank, stated last month that there would be no deflationary risks in China during the second half of the year. However, he acknowledged that the economy will need time to return to normal after the pandemic.
The government has set a consumer inflation target of around 3 percent for this year, higher than the
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
Denial of responsibility! Samachar Central is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
