Latest News:  
Beijing   Thundershower/Overcast    29 / 23 ℃  City Forecast

English>>China Business

China's PPI down 2.9% in July

(Xinhua)

13:47, August 09, 2012

BEIJING -- China's Producer Price Index, a main gauge of inflation at the wholesale level, fell 2.9 percent in July from a year earlier, the National Bureau of Statistics said Thursday.

The data marked the fifth straight month of decline after China's PPI saw a drop in March for the first time since December 2009, NBS data showed.

On a month-on-month basis, the country's PPI for July moved down 0.8 percent, the NBS said in a statement on its website.

In July, producer purchase prices shed 3.4 percent year on year and 0.8 percent on a monthly basis, the NBS said.

In the first seven months of the year, the PPI went down one percent year on year, while producer purchase prices lost 0.8 percent, it said.

The NBS also announced Thursday that China's consumer price index, a key gauge of inflation, grew 1.8 percent year on year in July, the slowest pace since February 2010.

Qu Hongbin, chief economist at HSBC China and co-head of Asian Economic Research at HSBC, said the data suggests that China's real economy, especially industrial enterprises, are facing increasing deflationary pressure.

"The decline of the PPI has highlighted the grim facts of sluggish market demand, shrinking business orders and continuing destocking," he said.

Liu Yuhui, a researcher with the Chinese Academy of Social Sciences, said weak demand will be followed by narrower profits, which will in turn affect investment and employment.

"Policymakers should place more attention on downward pressure in the real economy," Qu said, adding that easing inflation will offer more room for policy fine-tuning.

In a report released last Sunday, the central bank said it will strengthen the fine-tuning of its monetary policy in the second half of the year and improve its credit policies to shore up the development of the real economy.

News we recommend:
Luxury brands continue to cash in on China market Rare earth regulation justified Growth to bounce back in H2
Lamborghini sees 20-30% rise in supercar sales Ad campaigns are competing hard in London Major lenders broaden horizons and flex financial muscles
US takes trade remedy actions against China  Chinese prefer foreign brands Mascot maker feels pinch of rising labor costs

Email|Print|Comments(Editor:李倩、厉振羽)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. Joint trainings held to test combat capability

  2. Volcano erupts on New Zealand's North Island

  3. Has the bear outstayed his welcome?

  4. Puppets battle it out on London stage

  5. Movie---Love is not blind

  6. Collection of funny pictures!

Most Popular

Opinions

  1. Fearing others' rise offers path to eventual doom
  2. Ocean-lapped Japan wary of China's power
  3. Editorial: Reducing grain loss
  4. Who compels Annan to resign?
  5. How can Japan get rid of sense of frustration?
  6. Review on China's economic situation in first half
  7. Gaza Strip biggest loser of insecurity in Sinai
  8. Editorial: Test for Budget Law
  9. Why U.S. veteran go on shooting rampage?
  10. Officials, you are not above the people

What's happening in China

Old views are changing on overseas education

  1. Typhoon chasers use weibo to help public
  2. Drainage systems struggle to cope
  3. Disabled man compensated for missing train
  4. More mainlanders to tour Taiwan
  5. Swimmers told to avoid jellyfish after tragedy

China Features

  1. Boxing in China II: A Tale of Two Decades
  2. Fortune 500 Chinese companies not strong
  3. Why Hollywood favores China's actresses?
  4. Dongfeng Honda to recall 76,000 CR-Vs
  5. How to protect yourself during heavy rainstorms?

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai