Now Reading: China producer inflation hits 3-month low in July
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China producer inflation hits 3-month low in July
China's producer price inflation slowed to a three-month low in July, easing more than expected, official data showed on Sunday. Consumer inflation also cooled, reflecting weaker domestic demand in the economy. The…
The Story in Brief
China's producer price inflation slowed to a three-month low in July, easing more than expected, official data showed on Sunday. Consumer inflation also cooled, reflecting weaker domestic demand in the economy. The slowdown is consistent with recent economic activity data, even as global energy prices retreated against the backdrop of the US-Iran war.
Chinese leaders have pledged to accelerate fiscal spending on already budgeted infrastructure projects through year-end to bolster growth. The economy is showing a two-speed pattern of strong factory output and exports but weak domestic demand.
The Indian Opinion
The 'China slowdown is a global crisis' narrative ignores that Beijing already plans to accelerate infrastructure spending through year-end. The US-Iran war is cited in one source as a cause for retreating energy prices, but weaker domestic demand is clearly the bigger drag. Watch consumer price data next month: if it stays cool despite more fiscal spending, the stimulus is failing.
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
