Business & Economy

China’s inflation grows 2.5 percent year-on-year in June

Beijing, Jul 9 (efe-epa).- China’s Consumer Price Index (CPI), the main inflation indicator, grew 2.5 percent year-on-year in June against the 2.4 percent growth it posted in the previous month, the National Bureau of Statistics (NBS) said Thursday.

The figure is in line with analysts’ forecasts, which had predicted an increase in inflation of around 2.5 percent in the month of June.

Despite rising marginally from May, this is the second lowest rate of the CPI since April 2019 – it reached 5.4 percent in January – amid government control to contain the SARS-CoV-2 coronavirus pandemic and economic stimulus measures to revive the economy after the halt caused by the virus.

NBS statistician Dong Lijuan attributed June’s data to the resumption of business activity in cities as well as policies put in place to guarantee supply and stabilize prices which led the market to remain generally stable.

The agency’s data shows that, as in previous months, the main driver behind the inter-annual increase in the CPI was rising food prices, which increased 11.1 percent in June as compared to 10.6 percent in May.

The price of pork continued to rise and increased by 81.6 percent year-on-year last month (it rose 81.7 percent year-on-year in May and 96.9 percent in April). Pork is one of the most sought-after products by Chinese consumers as its production has been affected since mid-2018 by an outbreak of African swine fever that has decimated the pig population in the Asian country.

In contrast, prices of fresh fruit fell by 29 percent, those of eggs decreased by 13.6 percent and vegetables dropped 4.2 percent.

The NBS said that prices of non-food items increased by 0.3 percent year-on-year – they had risen by 0.4 percent in the previous two months – while those of consumer goods increased by 3.5 percent and services by 0.7 percent.

Both the cost of health care and of education, and culture and entertainment rose by 1.9 percent year-on-year in June while prices in the transport and communications sector fell by 4.6 percent and those of clothing and homes decreased by 0.4 percent and 0.6 percent respectively.

The NBS also released data on the Production Price Index, which measures wholesale inflation and decreased by 3 percent year-on-year in June after recording declines of 3.7 percent in May, 3.1 percent in April and 1.5 percent in March. EFE-EPA


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