Despite the ongoing decline in producer prices, the annual consumer inflation rate in China showed an increase in July, hitting the highest level in 41 months. According to China’s National Bureau of Statistics, consumer prices climbed by 1.6 percent which is 0.2 percent higher than in June.
Producer prices show the opposite dynamic. The annual inflation rate plunged by 5.4 percent in July according to the data published by the country’s statistical office. In June, it fell by 4.8 percent.
Consumer inflation came in line with the forecasts made by economists, though still twice below the target level of about 3 percent set by the People’s Bank of China.
Chinese authorities are expected to continue easing their monetary and fiscal policies in the second half of 2015.
The Chinese economy has been expanding at its slowest pace in six years, even though the country’s economic growth in the second quarter came in at 7 percent, exceeding the market expectations.
