BEIJING (Reuters) – China’s consumer prices rose slower than expected in August amid a heatwave and the COVID-19 outbreak, while producers Official data on inflation 2021 fell to its lowest level since February.
The consumer price index (CPI) rose 2.5% year-on-year from 2.7% in July, according to data released by the National Bureau of Statistics (NBS) on Friday. The figure was below analysts’ forecast for a 2.8 percent increase in a Reuters poll.
Producer prices rose 2.3% y/y in August, the slowest pace since February 2021, slowing from 4.2% in July, It was below the 3.1% growth forecast in the poll.
Recent data suggest that the world’s second-largest economy has fallen into a slump amid a softening housing market and strict COVID- 19 restrictions It lost momentum further in August.
When CPI inflation is close to the government’s target of 3.0%, it is still below the high inflation levels of other major economies.
The People’s Bank of China (PBoC) warned in August that China faces rising structural inflation pressures, with CPI inflation likely to exceed 3%
But analysts say consumers Rising inflation could limit China’s room to ease monetary policy further.
“Potential financial risks (mortgage boycott and RU Lal bank scandal) may force the PBOC to remain accommodative and provide appropriate liquidity to cushion risks,” Barclays Bank (LON: BARC) in research report middle.
“We think the central bank would prefer to use some low-allocation and targeted policy easing tools, including re-lending and re-discounting, or rely on policy banks to boost lending and support credit growth .”
Food prices rose 6.1% year-on-year, narrowed slightly Pork prices rose 6.3% in July, and pork prices rose 19.4% , while July rose 20.2%.
Hog prices in the world’s largest pork producer have soared in recent months as a reduction in the number of breeding pigs from last year began to affect production.
The so-called core CPI, which excludes volatile food and energy prices, rose 0.8% year-on-year, unchanged from July.
In August, China’s central bank cut key interest rates and lowered benchmark lending rates
Chinese policymakers again issued a statement this week A sense of urgency to boost a flagging economy, saying action this quarter is crucial as data shows a further loss of momentum.