Reported 7 months ago
China's National Bureau of Statistics revealed on June 12 that in May, the Consumer Price Index (CPI) remained at a 0.3% year-on-year increase, in line with the previous month but lower than the expected 0.4%. The Producer Price Index (PPI) in May saw a year-on-year decrease of 1.4%, as forecasted, marking the 20th consecutive month of negative growth. Experts worry that the continuously weak demand signals ongoing deflationary pressures. The CPI was mainly dragged down by non-food prices, while food prices remained flat. Economists predict that CPI will stay low in the third quarter but may increase in the fourth quarter due to various factors. Despite a slight improvement in PPI, concerns about deflation persist, with market analysts estimating China's annual CPI rate at only 0.7%, far from the official 3% goal. Calls for more policies to boost demand continue among experts and economists to combat the deflationary pressures.
Source: YAHOO