China’s Inflation in Line, Up 2.3%

Inflationary pressure in June eased slightly in China, giving policy makers more room to employ targeted fiscal and monetary measures in their bid to prop up economic growth.

China’s consumer-price index rose 2.3% in June from a year earlier compared with a 2.5% year-over-year rise in May, the National Bureau of Statistics said Wednesday. The gauge of inflation remains below Beijing’s annual target of 3.5% year for 2014 and slightly undershot the median 2.4% gain forecast by a poll of 21 economists by The Wall Street Journal.

“Inflation isn’t really going anywhere,” said HSBC HSBA.LN -1.46% analyst John Chua. “This probably gives Beijing more policy flexibility. They don’t worry about the economy running at full capacity.”  The world’s second-largest economy saw its slowest growth in 18 months during the first quarter, expanding by 7.4% year on year, compared with 7.7% in the fourth quarter of 2013.

WSJ

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.