Consumer price inflation in China eased in June, while producer price deflation continued, indicating that the recovery of the world's second-largest economy remains uneven despite multiple support measures from Beijing.
Data released by the National Bureau of Statistics on Wednesday showed that the Consumer Price Index (CPI) rose 0.2% year-on-year in June, below May's 0.3% increase. This figure also fell short of the 0.4% rise predicted by economists in a Reuters poll, suggesting that inflationary pressures remain low despite government efforts to stimulate consumption.
On a month-on-month basis, the CPI fell by 0.2% in June, compared to a 0.1% decline in May. This drop exceeded economists' expectations of a 0.1% decrease, highlighting weak consumer demand.
Meanwhile, the Producer Price Index (PPI) fell 0.8% year-on-year in June. Although this decline was narrower than the 1.4% drop in the previous month, it still indicates that price pressures on producers persist. The PPI decline matched economists' forecasts of a 0.8% fall, showing that industrial production continues to face challenges.
