China's CPI remains flat YoY in July; PPI down 3.6% YoY

On a monthly basis, the CPI rose by 0.4 per cent in July, reversing from a 0.1-per cent decline in the previous month. The increase was mainly driven by higher service and industrial consumer goods prices, NBS chief statistician Dong Lijuan said.

This shows that policies to expand domestic demand are continuing to take effect, with positive changes seen in the consumer sector, Dong was cited as saying by state-controlled media outlets.

The country’s producer price index (PPI), which measures costs for goods at the factory gate, went down by 3.6 per cent YoY and 0.2 per cent month on month (MoM) in July.

Dong explained that the contraction in the MoM PPI drop was partly due to seasonal factors and uncertainties in the global trade environment, and continued improvements in domestic market competition.

ALCHEMPro News Desk (DS)