China factory gate deflation deepens in June on weak demand
2023.07.09 23:02
© Reuters. FILE PHOTO: Smokes billows from the chimneys of a steel plant in Wu’an, Hebei province, China, February 23, 2017. Picture taken February 23, 2017. REUTERS/Thomas Peter
(Corrects to add dropped words in paragraph 3.)
BEIJING (Reuters) – China’s factory gate deflation deepened in June and missed expectations, while consumer prices were unchanged, data showed on Monday, as a faltering post-COVID recovery weighed on demand.
The producer price index (PPI) fell for a ninth consecutive month, down 5.4% from a year earlier after a 4.6% drop the previous month. That compared with a forecast for a 5.0% fall.
The consumer price index (CPI) was unchanged year-on-year, compared with the 0.2% gain seen in May, the National Bureau of Statistics (NBS) said, missing the median estimate for a 0.2% rise in a Reuters poll.
Momentum in China’s economic recovery has slowed as manufacturing and consumer spending falters. Authorities are signalling faster growth in the second quarter and markets are awaiting more concrete stimulus from Beijing to prop up consumption.
(This story has been refiled to fix typos in paragraph 3)
