China Weak Inflation & Falling Factory Gate Prices Keep Door Open For Policy Easing

RTTNews | vor 811 Tagen

(RTTNews) - China's consumer price inflation increased in May but remained very weak and factory gate prices declined the most in more than seven years, leaving the door open for monetary policy easing to support the struggling economy.

Consumer price inflation rose to 0.2 percent in May from 0.1 percent in the previous month, the National Bureau of Statistics said Friday. However, this was slower than the expected rate of 0.3 percent.

The government aims to keep consumer price inflation at around 3.0 percent this year.

The consumer price index dropped 0.2 percent in May from April, when prices slid 0.1 percent. Prices were expected to fall again by 0.1 percent.

Core inflation that excludes food and energy slowed to 0.6 percent from 0.7 percent a month ago.

Food price inflation accelerated to 1.0 percent from 0.4 percent, while non-food prices remained flat on year. Producer prices declined 4.6 percent on a yearly basis in May, the NBS said in a separate report. This was the biggest fall since February 2016. Economists had forecast prices to drop 4.3 percent after a 3.6 percent decrease in April.

A tightening of labor market is likely to put some upward pressure on inflation later this year, economists at Capital Economics said. Nonetheless, it is set to remain well within policymakers' comfort zone.

The People's Bank of China is expected to ease policy somewhat in the near-term, economists said. But in order to limit the impact on bank margins, the PBoC will favor tools such as window guidance and reserve requirement ratio reductions instead of policy rate cuts, they added.

Tags: CNY

China Leaves Benchmark Interest Rate Unchanged

The People's Bank of China maintained its interest rates on Wednesday, as Beijing focus on fiscal policy easing and more targeted measures. The central bank left its one-year loan prime rate at 3.0 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was retained at 3.50 percent. The bank had reduced its both LPRs by quarter points in October 2024.

RTTNews | vor 8 Tagen

China Economic Data Disappoints

China's industrial production, retail sales and fixed asset investment registered weaker-than-expected growth in July, strengthening calls for further policy support to rebalance the economy towards consumption. Industrial production grew 5.7 percent in July from a year ago, following June's 6.8 percent increase, the National Bureau of Statistics reported Friday.

RTTNews | vor 13 Tagen

China Exports Growth Accelerates; Imports Rise Unexpectedly

China's exports logged a robust growth in July as the sharp decline in shipments to the US was offset by the rise in exports to the EU and other markets, official data revealed Thursday. Exports surged 7.2 percent on a yearly basis, following June's 5.8 percent increase, the customs office reported. Exports were forecast to climb 5.4 percent.

RTTNews | vor 21 Tagen

China Services Growth Fastest Since May 2024

China's services activity expanded at the fastest pace in more than a year in July on rising inflows of new business, purchasing managers' survey data from S&P Global showed on Tuesday. The headline general services business activity index rose to 52.6 in July from 50.6 in June. The index extended the current period of growth to just over two-and-a-half years. Moreover, the index suggested that t

RTTNews | vor 23 Tagen

China Manufacturing Activity Slips Into Contraction

China's factory activity contracted in July as softening new orders forced manufacturers to scale back production and staffing, purchasing managers' survey results from S&P Global showed on Friday. The manufacturing Purchasing Managers' Index fell to 49.5 in July from 50.4 in June. The latest score suggested contraction in the sector.

RTTNews | vor 27 Tagen

China Manufacturing PMI Slips In July

The manufacturing sector in China continued to contract in July, and at a faster rate, the latest survey from the National Bureau of Statistics showed on Thursday with a manufacturing PMI score of 49.3.

RTTNews | vor 28 Tagen

China Keeps Key Lending Rates On Hold

The People's Bank of China maintained its interest rates unchanged on Monday as the economy faces subdued domestic demand amid challenging global economic conditions. The bank retained its one-year loan prime rate at 3.0 percent. Similarly, the five-year LPR, the benchmark for mortgage rates, was kept unchanged at 3.50 percent.

RTTNews | vor 38 Tagen

China GDP Growth Tops Expectations

China's economy registered a faster-than-expected growth in the second quarter with strong support from exports and industrial production despite the US trade tariff threats but weaker investment and persistent deflation continued to pose challenges. Gross domestic product expanded 5.2 percent on a yearly basis after rising 5.4 percent in the previous quarter.

RTTNews | vor 44 Tagen

EURUSD	1.16861	GBPUSD	1.35132	AUDUSD	0.65328
USDJPY	146.856	USDCAD	1.37501	USDCHF	0.80139