摘要
CHINA＇S ECONOMIC SLOWDOWN CONTINUESChina＇s inflation accelerated due to climbing food prices, with the Consumer Price Index （CPI） rising 2.7 percent year on year in June, up from the 2.1 percent registered in May （see Chart 1）, Although inflation is expected to remain tame in the coming months in the absence of an economic recovery, the central bank is more worried about long-term inflationary risks, which could complicate policy, especially as property prices keep escalating. Meanwhile, the Producer Price Index （PPI） fell 2.7 percent, marking the 16th straight month the index has declined （see Chart 2）. Factorygate prices extended its longest streak in a decade amid slowing economic growth and lower commodity costs. Overall, the lowest first-half inflation since the financial crisis in 2009 and prolonged factory-gate deflation underscoring weaker demand put the government at risk of missing its annual growth target for the first time since 1998.
CHINA＇S ECONOMIC SLOWDOWN CONTINUESChina＇s inflation accelerated due to climbing food prices, with the Consumer Price Index （CPI） rising 2.7 percent year on year in June, up from the 2.1 percent registered in May （see Chart 1）, Although inflation is expected to remain tame in the coming months in the absence of an economic recovery, the central bank is more worried about long-term inflationary risks, which could complicate policy, especially as property prices keep escalating. Meanwhile, the Producer Price Index （PPI） fell 2.7 percent, marking the 16th straight month the index has declined （see Chart 2）. Factorygate prices extended its longest streak in a decade amid slowing economic growth and lower commodity costs. Overall, the lowest first-half inflation since the financial crisis in 2009 and prolonged factory-gate deflation underscoring weaker demand put the government at risk of missing its annual growth target for the first time since 1998.
