China’s consumer price index (CPI) edged up slightly to 1.4% year-on-year in June, up from 1.2% in the prior month, as food prices rebounded in the month, according to data released by China’s National Bureau of Statistics. Inflation was expected to rise marginally to 1.3 percent.
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China has lowered its 2015 inflation target to around three per cent from 3.5 per cent previous year.
Versus the prior month CPI was flat. Producer prices extended its decline for the 40th straight month.
The fall in the gauge of factory-gate prices undershot economists’ median forecast of a 4.6% decline.
The consumer inflation rate in China rose to 1.4 percent in June, authorities said Thursday, though economists cautioned further stimulus was needed in the world’s second-largest economy as upward price pressures remained subdued.
A different concern is that policymakers’ intervention in equity markets shows that they are backsliding on reforms in general, Andrew Kenningham, a senior global economist at Capital Economics, said.
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Weighed down by a housing market downturn, weak domestic and external demand and overcapacity, China’s economy grew at its lowest rate in six years in the first quarter, expanding 7 percent.
