Industrial prices in China register the biggest drop since 2016 with the CPI at 0%

MADRID, 10 Jul. (EUROPA PRESS) -

China's industrial producer price index registered a year-on-year drop of 5.4% last June, compared with the 4.6% decline seen in May, representing the ninth consecutive drop and the largest decline in industrial prices in the country since 2016, according to data published by the National Statistics Office (ONE).

For its part, the year-on-year inflation rate in China stood at 0%, which represents a deceleration of two tenths compared to the rise in prices in May and its lowest level in 28 months.

The core inflation rate, which excludes the impact of volatility in energy and fresh food prices, slowed to 0.4% from 0.6% the previous month.

In monthly data, the Chinese inflation rate recorded a decline of 0.2% in the sixth month of the year in relation to the month of May, when it had also fallen two tenths.

In June, the prices of food, tobacco and alcohol rose 2% annually, including a 10.8% rise in the price of fresh vegetables, while meat fell 3.3%, with a drop of pork 7.2%.

"Producer price deflation deepened further last month, to its lowest level in more than seven years, and consumer price inflation fell to a 28-month low of 0%," said Julian Evans. -Pritchard, an analyst at Capital Economics, who, however, is confident that inflation will rise gradually by the end of the year, albeit with limited upside potential, leaving room for further policy easing.