On June 12, 2024, consumers shopped in a supermarket in Qingzhou, China.
Noor Photos | Noor Photos | Getty Images
BEIJING – China’s consumer prices rose 0.2% year-on-year in June, worse than expected, while producer prices fell in line with expectations, data from the China Bureau of Statistics showed. National Bureau of Statistics shown on Wednesday.
A Reuters survey shows that China’s consumer price index is expected to increase by 0.4% year-on-year in June.
The producer price index, which measures factory-factory prices, fell 0.8% year-on-year, in line with expectations.
Excluding volatile food and energy prices, core CPI rose 0.6% annually in June, slightly lower than the 0.7% increase in the first six months of this year.
The risk of deflation in China has not receded. Domestic demand remains weak.
Zhiwei Zhang
Chief Economist at Pinpoint Asset Management
In June, pork prices increased by 18.1% compared with the same period last year, while beef prices fell by 13.4%. Tourism prices increased by 3.7% year-on-year in June, down 0.8 percentage points from May.
“The risk of deflation in China has not subsided. Domestic demand remains weak,” Zhang Zhiwei, president and chief economist of Pindian Asset Management, said in a report.
China will rely on exports to support growth in the first half of this year, he added.
The country is due to release June trade data on Friday.
China’s sluggish domestic demand has kept inflation at a low level, while prices in major economies such as the United States remain high.
