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China's inflation grows 2.7% in June

Updated: 2013-07-09 09:51
( Xinhua)

China's inflation grows 2.7% in June

BEIJING - China's consumer price index (CPI), a main gauge of inflation, grew to 2.7 percent year on year in June, but analysts say the acceleration indicates little inflationary pressure.

The data, released on Tuesday, was up from 2.1 percent in May, but still well below the government's full-year target of 3.5 percent.

The National Bureau of Statistics attributed the acceleration to a 4.9-percent rise in food prices, as well as the base effect.

"From a global perspective, 2.7-percent inflation growth will not add too much pressure to the economy. Due to insufficient domestic and foreign demand, we expect mild inflation this year, probably within 2.5 percent," said Zhang Bin, a researcher with the Chinese Academy of Social Sciences (CASS).

The data also showed that China's producer price index (PPI), which measures wholesale inflation, fell 2.7 percent year on year in June, marking the 16th straight month of declines and pointing to weak market demand.

The PPI fell 2.9 percent year on year in May, the steepest drop in seven months.

"The slow consolidation of manufacturing capacity, as well as lackluster recovery for demand, will likely continue to weigh on this series," said Yao Wei, China economist at Societe Generale.

China's inflation grows 2.7% in June

 

 

 

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