China’s Inflation May Lead to More Stimulus

China’s consumer inflation cooled slightly more than expected in June, pointing to lingering weakness in the economy which could prompt Beijing to launch further stimulus measures to shore up growth.

The consumer price index (CPI) rose 2.3 percent in June from a year earlier, missing the market forecast of 2.4 percent in a Reuters poll and down from 2.5 percent in May, the National Bureau of Statistics said on Wednesday.

The producer price index (PPI) dropped 1.1 percent in its 28th straight month of decline, versus a market consensus for a fall of 1 percent, signalling that demand in the domestic economy remained lukewarm, despite some recent signs of stabilisation.

Reuters

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.