China, July Consumer Price Growth Rate at 0%... Continued Concerns Over Economic Slowdown

Korea Economic Daily

Summary

The People's Republic of China's July Consumer Price Index (CPI) growth rate was reported at 0%.
It was higher than market expectations, but concerns over an economic slowdown persist.
The July Producer Price Index (PPI) dropped 3.6%, marking a 34-month streak of declines.

The July Consumer Price Index (CPI) growth rate in the People's Republic of China recorded 0%.

According to the National Bureau of Statistics of the People's Republic of China on the 9th, July's CPI was the same as the previous year. This is higher than the market forecast (-0.1%) compiled by Reuters.

Looking at the People's Republic of China's CPI change rate (year-on-year), it rose 0.5% last January when the government's domestic demand stimulation policy was announced and Chinese New Year overlapped, but then fell 0.7% in February and recorded a continuous 0.1% decrease from March to May. Afterwards, the CPI in June rose by 0.1% year-on-year, turning upward for the first time in 5 months, but dropped back to 0% in just one month.

The Producer Price Index (PPI) fell 3.6% year-on-year, continuing a 34-month downward trend. In June, it also dropped by 3.6%, marking the largest decline in 23 months.

Shin Yong-hyun, Hankyung.com reporter yonghyun@hankyung.com