China's CPI down 0.3% YoY, up 0.2% MoM in July 2023

09 Aug '23

2 min read

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Insights

China's consumer price index (CPI) increased by 0.2 per cent in July 2023, while annual CPI declined by 0.3 per cent, as per the NBS.
Non-food and industrial goods saw monthly increases.
Core CPI rose by 0.8 per cent YoY, with the average CPI for the first seven months up by 0.5 per cent.
The country's economic growth remains at 6.3 per cent in Q2.

China’s consumer price index (CPI), a principal measure of inflation, has recorded a monthly increase of 0.2 per cent in July 2023, as per the National Bureau of Statistics (NBS). On an annual basis, the country’s CPI declined by 0.3 per cent.

NBS statistician Dong Lijuan asserted that this is due to a high base in the corresponding period of 2022 and predicts that the year-on-year (YoY) decline of the CPI will likely be a short-term event.

The non-food items’ prices have increased by 0.5 per cent on a monthly basis, and the prices of industrial consumer goods have seen a rise of 0.3 per cent month-on-month (MoM). This marks a reversal from a 0.4 per cent decline observed in the previous month.

The core CPI, excluding food and energy prices, rose by 0.8 per cent YoY, with the rate of increase widening by 0.4 percentage points in comparison with June. Additionally, the average CPI from January to July has increased by 0.5 per cent YoY.

China’s economy expanded 6.3 per cent in the second quarter, an acceleration from 4.5 per cent in the previous quarter. The growth rate for the first half of the year stands at 5.5 per cent, surpassing the government’s target of around 5 per cent for 2023.

As per global experts, China has fallen into deflation due to weakening demand across the country.

ALCHEMPro News Desk (NB)

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