Chinese Inflation Slowed in July
Data on China's trade and inflation were weak in July, probably as a result of the government's targeted tightening monetary policy. The CPI in China unexpectedly fell to + 1.4% yoy in July, from + 1.5% a month earlier. The growth was below the forecast of economists +1.5%.
Core consumer price index remained at the level of + 1.5% for the first seven months of the year, which is significantly lower than the government target of + 3%. Also, the National Bureau of Statistics of China reported that the producer price index remained at 5.5% year-on-year.
China's trade surplus increased to $46.74 billion in July. Exports grew by 7.2%, while imports grew by 11%.
Weakness of the US dollar in recent months led to an increase in the Chinese yuan to a 9-month maximum. The US currency remained unstable against the renminbi, despite the recent recovery.