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Consumer inflation in China picks up

Staff writer |
China's consumer inflation remained at a low level while industrial deflation lingered in June, raising speculation that policymakers may encourage more bank lending to shore up manufacturing and prevent risks arising from the stock market turbulence.

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The Consumer Price Index, the main gauge of inflation, climbed to 1.4 percent in June from 1.2 percent in May, driven largely by the 1.9 percent year-on-year growth in food prices, the National Bureau of Statistics said.

During the first six months of the year, the CPI rose 1.3 percent from a year earlier, much less than the annual targeted ceiling of 3 percent. The factory gate price, or the Producer Price Index, further contracted by 4.8 percent last month compared with a decline of 4.6 percent in May, the NBS said.

The 40-month consecutive PPI decline indicated intensified deflation in the industrial sector, related to the sharp drop in global commodity prices and weak demand.

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