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在线翻译:
szdaily -> Business
Consumer inflation growth slows in July
    2017-August-10  08:53    Shenzhen Daily

CHINA’S consumer inflation slowed a notch in July, with softer non-food prices signaling that economic activity may be cooling as the government works to reduce debt levels.

China’s consumer price index rose 1.4 percent in July from a year ago, compared with a 1.5 percent gain in June, the National Bureau of Statistics said yesterday. The result was also lower than a 1.5 percent increase expected by economists.

Food prices, the biggest component of the consumer inflation index, declined 1.1 percent from the same time a year ago, less steep than their 1.2 percent drop in June.

Prices of vegetables and eggs rose, driven up by a widespread heat wave and flooding, the statistics bureau said.

Meanwhile, the rate of increase in the price of nonfood items fell to a seven-month low of 2 percent last month, as health care and services became less expensive, the bureau said.

The absence of price pressure means the government may have to look for levers other than raising key interest rates in its campaign to bring down high rates of corporate debt, some economists said.

“Overall, China’s inflation pressure is ebbing. That’s a sign that shows monetary policy cannot be tightened further,” said Yang Weixiao, an economist at Founder Securities.

July’s consumer inflationary rate is well below the government’s 3 percent target set for 2017. Some economists said the rate still has room to fall, to around 1 percent, before affecting monetary policy.

Meanwhile, China’s producer price index stayed unchanged at 5.5 percent for a third consecutive month in July, and turned positive in month-over-month terms for the first time since March.

After falling for nearly five years, China’s producer price index only turned positive last September. A decline of producer prices has burdened factories with shrinking profits and increasing debt.

While July’s gain was the 11th in a row, the index is expected to sag in the months ahead amid slackening domestic demand and softening commodity prices, said Liu Xuezhi, an economist with Bank of Communications.

“With growth likely to slow further in the coming quarters, we think the pickup in price pressures witnessed during the past year will continue to unwind. This will disappoint those hoping for a sustained period of reflation that could help to erode corporate debt burdens,” said Julian Evans-Pritchard, an economist with Capital Economics.

(SD-Agencies)

 

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