According to the National Bureau of Statistics of China, the country’s consumer price index rose by 1.5% in June an annualized terms, matching the previous month’s pace.
In June, producer prices grew by 5.5% on a yearly basis, unchanged from May. Both figures come in line with analysts’ expectations.
Consumer prices and producer prices edged down by 0.2% in the reporting period from the previous month.
The prices grew by 2.0 percent in cities and 1.7 percent in rural areas on a yearly basis. Food prices decreased by 1.2%, non-food prices, by contrast, increased by 2.2%. Services prices rose by 3%.
In the first six months of the year, inflation in China was 1.4%.
According to IHS Markit economist Rajiv Biswas, further slowdown in producer price growth is likely to occur in the coming months.
An economist at Australia & New Zealand Banking Group Ltd believes that 2017 will be another year when the consumer price index will be below the target level of 3%.
Last year, Chinese inflation was at the level of 2%, below the official forecast of 3%. This year, the government is expecting inflation at the level of 3%. In 2016, the producer price index fell by 1.4% in China.
