China’s consumer index up 1.6%

China’s consumer index up 1.6%

BEIJING (Bloomberg) — China’s consumer inflation accelerated in July as rising pork prices ease deflationary risks.

The nation’s consumer-price index increased 1.6 percent last month from a year earlier, according to the National Bureau of Statistics. That compared with the 1.5 percent median estimate in a Bloomberg survey and the 1.4 percent increase in June.

Subdued inflation has given room for the central bank to cut interest rates four times since November in a bid to cushion the economy’s slowdown. Even after last month’s pickup, the inflation rate remains about half the government’s target for 3 percent and is unlikely to restrain further easing.

“We don’t see a pork-driven rebound in CPI as an upcoming impediment to monetary easing,” economists at UBS Group AG wrote in a note before the release. “The sluggish economy in general will likely prevent any undesirable surge in inflation.”

Marbled pork prices surged 2.9 percent in the 10 days ending July 30 from the previous ten days, according to government data. Pork is a major staple on Chinese dining tables and an important part of the CPI basket.Speech
China’s consumer index up 1.6% China’s consumer index up 1.6% Reviewed by Ajit Kumar on 7:59 PM Rating: 5

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