Inflation in China slows more than expected. Last month the consumer price index rose by 2,2% on an annual basis, from 3% in May, a tenth below analysts' estimates (2,3%). This is the minimum for 29 months, i.e. since January 2010. On a monthly basis, the change was even more marked: the indicator fell by 0,6%, double the expected -0,3%. The data was released today by the National Statistics Office.
As for the producer price index, in June it fell by 2,1% compared to a year ago against expectations of -1,9%. On a monthly basis, the decline was 0,7%. The inflation rate in the first half of the year thus stood at 3,3%, well below the target indicated by the government (4%).
