On June 12, 2024, shoppers flooded a supermarket in Qingzhou, China, reflecting the daily bustle captured by Nurphoto | Getty Images. BEIJING — Recent data from the National Bureau of Statistics reveals a modest 0.2% rise in China’s consumer price inflation for June 2024, falling short of the anticipated 0.4% increase predicted by a Reuters poll. Concurrently, the producer price index (PPI), which assesses factory-gate prices, declined by 0.8%, aligning with forecasts.
Core CPI, which excludes the more volatile food and energy prices, saw a year-on-year rise of 0.6% in June, a slight deceleration from the 0.7% increase measured over the first half of the year. Notably, pork prices surged by 18.1% compared to last year, while beef prices declined by 13.4%. Tourism prices also increased by 3.7% year-on-year in June, though they dipped by 0.8% from May.
Zhiwei Zhang, the chief economist at Pinpoint Asset Management, highlighted that the threat of deflation remains a concern due to persistently weak domestic demand. Zhang noted that China is expected to depend heavily on exports to stimulate growth in the initial half of the year. The nation’s trade data for June is slated for release on Friday.
China’s flagging domestic demand has contributed to lower inflation rates, contrasting sharply with major economies like the U.S., where prices have remained elevated. This subdued internal demand underscores ongoing economic challenges and the delicate balance China must maintain between internal market stimulation and external trade reliance.
Original Story https://www.cnbc.com/2024/07/10/chinas-inflation-numbers-miss-expectations-to-rise-0point2percent-in-june.html
Category :
Tags:
