No sign of unwanted inflationary pressures in China’s producer (PPI) and consumer price (CPIA) data for June, despite a slightly stronger pace of activity in some areas of the economy.
The PPI and CPI came in unchanged from May at an annual rate of 5.5% and 1.5% respectively.
Compared to a month prior producer prices eased 0.2%, while the cPI fell by the same amount from May.
Food prices, the biggest component of the consumer price index, fell at a slower 1.2 percent from the previous year, after sliding 1.6 percent in May and 3.5 percent in April.
“Falling food prices can be attributed to a high build-up of food reserves and seasonal factors,” Zhu Baoliang, chief economist at the State Information Center (SIC), said, according to a story published on Monday in China’s Financial News newspaper, affiliated with the People’s Bank of China (PBOC),” Reuters reported.
The weak inflation readings came despite signs of a pickup in factory activity. The start of month surveys showed China’s manufacturing sector expanded at the quickest pace in three months in June, buoyed by strong production and new orders.
