According to the National Bureau of Statistics of China, the consumer price index rose by 2.5% in June, beating economists’ expectations. The latest data showed that consumer prices in China increased by 2.5% last month from a year earlier and by 0.4% compared to May 2022. In particular, food prices in China went up by 2.9% in June, while non-food prices grew by 2.5%. Consumer goods prices were higher by 3.5% and that of services – by 1.7%. Notably, the inflation rate in urban areas climbed by 2.5%, while in rural areas it accelerated by 2.6%. Analysts expected the CPI for June to rise by 2.4% compared to 2.1% recorded in May. Meanwhile, the situation in Europe is not much better. The Centre for Economics and Business Research in the UK warned of an increasing risk of economic recession in Europe. Amid the gas supply shortage, the recession risk rises to 40%. Many factories in Europe are on the verge of a shutdown. A further drop in LNG imports will fuel already galloping inflation. This will further deteriorate the economic state of the region, experts warn.
