Chinese government data shows consumer prices in June rose at the slowest pace in six months, suggesting the world’s second-largest economy is still experiencing weak consumer demand amid a broad downturn.
The National Bureau of Statistics said Sunday China’s consumer price index (CPI) rose 1.9 percent in June from a year earlier.
Although the rate was slightly above analyst expectations, it remained far below the 3 percent target set by Chinese officials for 2016 and offers the central bank flexibility to enact a new round of stimulus in the latter half of the year.
The People’s Bank of China has kept interest rates at record lows since October.
China’s leaders have set a 2016 GDP growth target of 6.5 percent to 7 percent, the lowest rate in a quarter century.
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