THEChinese inflation brake in June. According to the latest data from China's National Bureau of Statistics, consumer prices rose by 2,3% compared to June 2013, compared with +2,5% in May. The figure is slightly lower than the expectations of analysts who had predicted a 2,4% increase.
On a monthly basis, however, there was a decrease of 0,1%. Above all, the sharp drop in the prices of pork and fresh vegetables slowed down the run of inflation. Producer prices are also downshifting, the index of which fell by 1,1% on an annual basis and by 0,2% on a monthly basis (expectations were for a -1% trend).
At this point, the 3,5% inflation target for the whole of 2014 appears very difficult to achieve. The Chinese government is targeting 7,5% GDP growth by 2015 and to get closer to the goal, it is likely to adopt further stimulus measures in the coming weeks. It remains to understand the nature of the interventions, which could be targeted and one-off, as has been done up to now, or more incisive, such as the reduction of interest rates or compulsory bank reserves.
