China's consumer inflation picks up; factory gate deflation deepens in May
China inflation rate: China's factory gate prices fell faster than expected in May, as faltering demand weighed on manufacturing, impeding the fragile economic recovery, while consumer inflation missed expectations.
China inflation rate: China's factory gate prices fell faster than expected in May, as faltering demand weighed on manufacturing, impeding the fragile economic recovery, while consumer inflation missed expectations. The producer price index (PPI) for May fell for an eighth consecutive month, down 4.6 per cent, the National Bureau of Statistics (NBS) said. Economists in a Reuters poll had predicted a 4.3 per cent fall. The consumer price index (CPI) rose 0.2 per cent year-on-year after a 0.1 per cent rise in the previous month, missing a forecast for a 0.3 per cent increase.
China's economy grew faster than expected in the first quarter, but recent data showed factory activity contracted and imports fell in May. Some economists expect the People's Bank of China (PBOC) to cut rates or release more liquidity into the financial system. The bank cut lenders' reserve requirements ratio in March. China's biggest banks on Thursday said they had lowered interest rates on deposits, providing some relief for the financial sector and wider economy by easing pressure on profit margins and reducing lending costs.
Analysts have been downgrading their forecasts for economic growth for the year amid continued signs of slowing. The government has set a modest GDP growth target of around 5 per cent for this year, after badly missing the 2022 goal.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.