China's Annual Consumer Price Inflation Grew in June
The China’s annual inflation rose in June. Data from the National Bureau of Statistics (NBS) showed, that China’s annual consumer price inflation (CPI), a main gauge of inflation, grew 1.9% in June, in line with forecasts. On a monthly basis, the CPI dropped by 0.1% mom.
Meanwhile, producer price index (PPI), which measures costs for goods at the factory gate, rose 4.7% in June from a year earlier, beating forecasts of a 4.5% growth. On a monthly basis, the PPI rose 0.3% in June, compared with 0.4% growth in May. China's producer inflation has now picked up for three months in a row after easing in late 2017, although analysts said the rebound in producer prices is unlikely to be sustained amid uncertain global demand and slower domestic credit expansion.
Lower prices of fresh fruits and vegetables driven by abundant supply were the major reason for the CPI decline from May, said NBS. Non-food prices rose 2.2% from the same period last year, and 0.1% from May. China is aiming to keep annual CPI growth at around 3% this year, the same as the target for 2017.