While Chinese industrial enterprises are complaining about a decline in global demand and low business activity, the country’s authorities managed to take inflation under control. According to official data, in June, the consumer price index was unchanged on a yearly basis. In the first six months of the year, the CPI inched up by 0.7% compared to the same period in 2022.
A report provided by the National Bureau of Statistics of China unveiled that in June, inflation showed zero changes. The Chinese authorities could be proud of such a result as they managed to cap the surge in consumer prices that began just after the pandemic. Going into details, it is becoming obvious that the government has even more reasons to be proud of the taken measures. Thus, in the cities, the CPI stayed at the levels recorded in June 2022. Meanwhile, in the countryside, it dropped by 0.1%. Thus, prices of food showed the most noticeable rise of 2.3%. At the same time, prices of non-food products and consumer goods slid by 0.5%, while services added 0.7%. Prices of vegetables and fruits jumped by 10.8% and 6.4% respectively, manifesting the biggest rise in the food category. Prices of meat decreased by 3.3%, in particular, pork became cheaper by 7.2%.
In June, prices of health services grew by 1.1% compared to the same period in 2022. Prices of education as well as cultural and entertainment events advanced by 1.5%, prices of transport and communications fell by 6.5%, and housing prices remained at the same level. Notably, in 2022, inflation in China totaled 2%, whereas economists had expected growth to about 3%. The official outlook suggests that in 2023, the CPI will be at 3%. If the predictions come true, this year will be successful for China.
