70052
China Factory Gate Inflation Below Expectations
China Factory Gate Inflation Below Expectations

China Factory Gate Inflation Below Expectations

China Factory Gate Inflation Below Expectations

China’s factory price inflation remained steady for the third consecutive month in July, the government said on Wednesday, coming in slightly below expectations as experts warn of a further slowdown in the world’s second-largest economy.
The producer price index rose 5.5% year-on-year, according to the National Bureau of Statistics, the same as the previous two months but missing the 5.6% gain forecast in a Bloomberg News survey, AFP reported.
Julian Evans-Pritchard of Capital Economics warned the producer price gauge’s steadiness “appeared to be almost entirely due to the recent rally in domestic steel prices, which is unlikely to be sustained in our view”.
China’s steel prices surged in July, which has helped lead world steel market prices higher, the China Iron and Steel Industry Association has said.
China’s consumer price index, a main gauge of retail inflation, rose 1.4% year-on-year last month, down from 1.5% in June and also missing Bloomberg’s forecast of 1.5%.
Consumer price inflation has been “generally stable”, NBS analyst Sheng Guoqing said in a statement, adding that high temperatures and heavy rains this summer have supported vegetable and egg prices.
“With policy tightening now weighing on economic activity, underlying inflation has already begun to decline,” Evans-Pritchard said in a research note.
The inflation data came a day after the release of figures showing the rate of growth in China’s exports and imports also slowed significantly in July.
Weaker factory price inflation could start to weigh on profits at China’s large—and often heavily indebted—industrial firms, who have benefited from a strong commodities reflation cycle over the last year.

 

Short URL : https://goo.gl/s1Kkm7
  1. https://goo.gl/DAhvAW
  • https://goo.gl/zJMimW
  • https://goo.gl/GLhjjd
  • https://goo.gl/o2Xs6V
  • https://goo.gl/yo1Che

You can also read ...

Singapore Exports See Surprise Drop
Exports from Singapore last month stumbled after four months...
Outlook for Global Economy, Equity Markets Brighter
Ebrahim Rahbari remains positive on the global economy and...
OECD: Youth Likely to Face Higher Inequality in Old Age
Younger generations have been experiencing more unstable labor...
Brazil August Growth Lowest in Five months
Economic activity in Brazil contracted in August at the...
S. Korea Money Supply Up 9.1%
The money supply in South Korea jumped 9.1% in August from a...
UN Expert Says: IMF, WB Looking More Like Failed Institutions
The lending policies of the International Monetary Fund are...
Low ECB Rates an Opportunity to Reform
Easy monetary policy gives eurozone governments a window of...
US Economic Confidence Dips
The confidence of Americans in the US economy tumbled into...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus