China’s inflation stayed subdued in July while factory-gate prices fell for a 17th month, giving Premier Li Keqiang more room to boost stimulus should an economic slowdown deepen.
The consumer price index rose 2.7 percent in July from a year earlier, the National Bureau of Statistics said today in Beijing. That was less than the 2.8 percent median estimate in a Bloomberg News survey and the government’s full-year target of 3.5 percent. Producer prices fell 2.3 percent after a 2.7 percent drop the previous month.
The reports reflect a growth deceleration that’s left the world’s second-largest economy poised for the weakest expansion in 23 years. China last month announced what Bank of America Corp. called a “small stimulus” while pursuing reforms that include ordering more than 1,400 companies in 19 industries to cut excess production capacity this year.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.