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MADRID, 10 Jun. (EUROPA PRESS) -
The year-on-year inflation rate in China stood at 2.1% last May, in line with the rise in prices during the month of April, according to the National Statistics Office (ONE).
However, in the case of industrial production prices, the figure for May stood at 6.4%, compared to the year-on-year rise of 8% in the previous month, which represents the smallest increase since March 2021.
"Despite stronger demand amid the improving virus situation, we believe the CPI will remain below the government's 3% target," said Sheana Yue, China economist at Capital Economics, for whom this it would leave room for the People's Bank of China to further relax its policy to support growth.
In this way, after the drop in the five-year reference rates, the expert anticipates more rate cuts in a short time, "the first of which could arrive as soon as next Wednesday."
