Jiabimei
Thanks to the government’s efforts to stimulate consumption, China’s consumer prices increased by 0.5% year-on-year in July, higher than the 0.2% increase in the previous month and exceeding expectations of 0.3%. At the same time, producer prices fell 0.8%, unchanged from the previous month and slightly better than the expected 0.9% decline.
Core consumer prices, which exclude food and energy costs, rose 0.4% year-on-year, the lowest level in six months. On a monthly basis, CPI rose by 0.5%, the first increase since April, which was 0.3% higher than expected.
Monthly producer prices fell by 0.2%, the same rate of decline as in June. Taking into account the first seven months of 2024, ex-factory prices fell by 2.0%.
In July 2024, due to high temperatures and rainy weather in some areas, food prices in China were the same as the previous year.
On Friday, the Shanghai Composite Index rose 0.3% to around 2,880 points, and the Shenzhen Component Index rose 0.3% to 8,470 points; boosted by better-than-expected inflation data, the offshore RMB exchange rate rose to 7.17 yuan against the US dollar.
Earlier this week, China reported a smaller-than-expected trade surplus for July 2024 as exports grew less than expected and imports exceeded expectations.
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