China Records 39th Straight Month of Producer Price Index Declines

The nation's PPI slipped to -4.8% on an annual basis in June. In May, producer prices had declined 4.6%.

On the consumer inflation front, the June 1.4% year-on-year rise did exceed analysts expectations.

Even so, one economist indicated that the figure was still not reflective of a healthy economy.

Here’s a July 9 Reuters excerpt:

Li Huiyong, economist at Shenyin & Wanguo Securities in Shanghai, said inflation was still at a low level
"The data continues to point out the weak domestic demand in the real economy. Given the stabilizing of consumer prices, we think there are still room for the central bank to ease its monetary policy," Li said. "They are more likely to cut the amount of cash that banks must hold as reserves in the coming months."
China's anemic economy has had a difficult year. A steady stream of policy-loosening steps has not revived activity. Worse, a swooning Chinese stock market that has plunged nearly one-third in the past month, wiping out around $4 trillion so far, has further rattled confidence...
To support the economy, China's central bank cut its lending rates for the fourth time in seven months in June, and lowered the amount of cash that some banks must keep as reserves.

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