Decline in Producer Prices in China Rapidly

Producer prices in China fell at the fastest pace in seven and a half years in June, while consumer inflation recorded its slowest rate since 2021, which presents an additional impetus for policymakers to take further measures to boost demand. The National Bureau of Statistics stated on Monday that the "Producer Price Index" declined for the ninth consecutive month by 5.4 percent compared to the previous year, marking the largest drop since December 2015. This contrasts with a 4.6 percent decline in the previous month and a 5.0 percent decrease anticipated by analysts in a Reuters poll. The "Consumer Price Index" remained unchanged year-on-year after rising by 0.2 percent in May, which defied expectations for a 0.2 percent increase, resulting in the slowest pace since February 2021.