Consumers shop at a supermarket in Qingzhou, China on June 12, 2024.
Nurfoto | Nurfoto | Getty Images
BEIJING – China’s consumer price inflation rose 0.2% in June from a year ago, beating expectations, while producer prices fell in line with forecasts, data from the National Bureau of Statistics It turned out Wednesday.
China’s consumer price index is expected to rise 0.4% year-on-year in June, according to a Reuters poll.
The producer price index, which measures factory prices, fell 0.8% from a year ago – in line with expectations.
The core CPI, which excludes more volatile food and energy prices, rose 0.6% year-on-year in June, slightly slower than the 0.7% increase in the first six months of the year.
The risk of deflation has not disappeared in China. Domestic demand remains weak.
Zhiwei Zhang
chief economist, Pinpoint Asset Management
Pork prices rose 18.1% in June from a year ago, while beef prices fell 13.4%. Tourist prices rose 3.7% year-on-year in June, down 0.8% from May.
“Deflation risk has not disappeared in China. Domestic demand remains weak,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.
He added that China would rely on exports to support growth in the first half of the year.
The country will release trade data for June on Friday.
Moderate domestic demand in China has kept inflation low, unlike major economies such as the US, where prices have remained high.
