China’s consumer inflation is lower than expected

Almaty. August 9. Silkroadnews – China’s consumer inflation turned to be lower than expected, CNBC reports.
“China’s consumer price index rose 1.4 percent in July from a year ago, missing estimates, the National Bureau of Statistics said Wednesday. Meanwhile, China’s producer price index rose 5.5 percent in July from a year ago. Analysts polled by Reuters expected consumer inflation to stay steady from June at 1.5 percent on-year while producer prices were also forecast to remain flat from the 5.5 percent on-year rise in June”, report said.
At the same time, it is noted that the inflation of producer prices has been stable for the third straight month and positive on a month-to-month basis for the first time since March, which is obviously connected with the growth of steel prices and can hardly be considered as a stable factor.
It is reported that inflation in China began to decline as a result of tightening monetary policy. At the same time data on inflation in the country are considered as an indicator of the effectiveness of the policy of the central bank. The Chinese government tightened its monetary policy to enter into debt.
““The upshot is that with policy tightening now weighing on economic activity, underlying inflation has already begun to decline. With growth likely to slow further in the coming quarters, we think the pick-up in price pressures witnessed during the past year will continue to unwind”, said Evans-Pritchard”, report reads.
China’s inflation data are closely watched as indicators of how the central bank may approach monetary policy. The target of inflation in China in 2017 is 3%.