Like in most countries, consumer prices are soaring in China. In June, inflation in the country came in at 2.5%, exceeding economists’ expectations. Of course, these figures are not as high as in some other developed countries, but they are clearly a wake-up call for the world’s second-largest economic power.
According to data provided by the National Bureau of Statistics of China, annual inflation climbed 2.5% in June. On a monthly basis, the reading rose by 0.4%. Food prices surged by 2.9%, non-food prices advanced by 2.5%, consumer goods swelled by 3.5%, and services grew by 1.7%.
The inflation rate in cities rose by 2.5%, while rural areas saw an increase of 2.6%. Meanwhile, the local government expected consumer inflation to come in at 2.4% in June versus 2.1% in May.
Earlier, the Centre for Economics and Business Research (Cebr), one of the UK's leading economics consultancies, said recession risks in Europe mounted to 40% in the face of limited natural gas supplies. EU countries will have to shut down production facilities, and the aftermath of this measure will depend on the scale of natural gas usage. In light of record inflation, a marked reduction in imports will only boost prices further and hurt the economy.
