China factory-gate prices fall again in July as deflation concerns linger
China’s producer prices dropped 3.6% year-on-year in July, extending a two-year decline and missing economists’ forecasts, as weak domestic demand and global trade uncertainty continued to weigh on the economy.
The fall matched June’s near two-year low, though month-on-month declines slowed to 0.2% from 0.4% the previous month. Consumer prices were flat from a year earlier, compared with a 0.1% rise in June, while core inflation reached a 17-month high at 0.8%, News.Az reports, citing Reuters.
Analysts say there are early signs deflationary pressures may be easing, helped by government measures to curb excessive competition in key industries. However, they warn that without stronger demand-side stimulus, a prolonged property slump and fragile trade ties with the U.S. could continue to drag on growth.
Extreme summer weather — heatwaves in the east and heavy rains in the north and south — added to economic strain last month.
Similar news
