China PPI Falls in June

China’s factory-gate prices fell in June at the slowest pace in more than two years, adding to signs of stabilization in the world’s second-largest economy.

The producer-price index declined 1.1 percent from a year earlier, the National Bureau of Statistics said today in Beijing, compared with the median estimate of analysts for a 1 percent drop. The consumer-price index (SHCOMP) increased 2.3 percent, below projections for a 2.4 percent gain.

The easing of factory deflation follows reports showing manufacturing expanded at a faster pace last month, indicating that government efforts including speeding up infrastructure spending are helping to defend the economic-growth target for the year of about 7.5 percent. Inflation remaining below the official goal of 3.5 percent gives Premier Li Keqiang room for additional stimulus if needed to deal with threats including a property-market slump.

Bloomberg

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