China’s consumer prices edge up in June, but deflation worries persist
China’s consumer price index rose for the first time in five months in June, but economists continued to call for bolder action to boost demand
China’s consumer prices rose for the first time in five months in June, but the modest gain still pointed to persistent weak demand in the world’s second-largest economy amid an unprecedented trade war with the United States.
The national consumer price index (CPI), a key gauge of inflation, rose 0.1 per cent year on year last month, according to data released by the National Bureau of Statistics on Wednesday.
The reading came in above a forecast of a 0.03 per cent drop provided by the financial data provider Wind based on a poll of Chinese economists. In May, the metric saw a 0.1 per cent year-on-year decline.
“Policies to expand domestic demand and boost consumption continued to show results in June,” said Dong Lijuan, a senior statistician at the bureau.
China is grappling with persistent deflationary pressure driven by a combination of sluggish domestic demand and industrial oversupply, with the trade war further hindering producers’ ability to clear excess inventory.