China Consumer Prices Rise in May as Factory Deflation Continues

China Consumer Prices Rise in May as Factory Deflation Continues
Please fol­low and like us:
Pin Share

Chi­na’s con­sumer prices rose at a slow­er pace than expect­ed in May, while fac­to­ry-gate prices extend­ed a defla­tion streak, rais­ing con­cerns about per­sis­tent weak demand in the world’s sec­ond-largest economy.

The con­sumer price index (CPI) in Chi­na increased by 0.3% year-over-year in May, hov­er­ing above zero for the fourth straight month, but miss­ing the medi­an fore­cast of 0.4% in a Bloomberg sur­vey of economists.

Mean­while, fac­to­ry-gate prices, as mea­sured by the pro­duc­er price index (PPI), remained in defla­tion for the 20th con­sec­u­tive month, a trend that began in late 2022. The per­sis­tent decline in fac­to­ry prices sug­gests con­tin­ued chal­lenges for man­u­fac­tur­ers and pro­duc­ers in pass­ing on high­er costs to consumers.

The weak­er-than-expect­ed infla­tion data stokes con­cerns about the strength of con­sumer demand in Chi­na, despite the gov­ern­men­t’s efforts to stim­u­late the economy.

Slug­gish con­sumer spend­ing and lin­ger­ing defla­tion­ary pres­sures could put fur­ther pres­sure on pol­i­cy­mak­ers to imple­ment addi­tion­al mea­sures to sup­port growth.

Ana­lysts will close­ly mon­i­tor the tra­jec­to­ry of Chi­na’s infla­tion and the effec­tive­ness of the gov­ern­men­t’s eco­nom­ic poli­cies in the com­ing months, as the coun­try nav­i­gates a com­plex eco­nom­ic land­scape amid glob­al uncertainties.

Please fol­low and like us:
Pin Share

Be the first to comment

Leave a Reply

Your email address will not be published.


*