In July, China recorded an increase in consumer prices, the pace of which turned out to be higher than preliminary expectations regarding the degree of intensity of this indicator.
The mentioned result is partly related to weather conditions that harmed food supplies in the form of interruptions in the implementation of the relevant process.
Currently, consumer activity in China is weak. This state of affairs limits the growth opportunities of the Asian country’s economy. Beijing is paying attention to this problem because it has a wide scale in the context of the impact on the condition of the world’s second-largest economy. At the same time, the Chinese leadership has not yet taken any drastic steps in the appropriate direction.
The consumer price index (CPI) in July in the Asian country rose to a five-month high of 0.5% year-on-year. The relevant information was published by the National Bureau of Statistics on Friday, August 9. It is worth noting that analysts interviewed by the media predicted that the CPI in the Asian country would grow by 0.3% in July. In June, the corresponding indicator increased by 0.2%.
NBS statistician Dong Lijuan says that high air temperatures and rainfalls in some areas of China last month were a factor in rising food prices.
Returning to the topic of weak domestic demand in the Asian country as a factor clouding the economic prospects, it is worth noting that for a long period, Beijing has been betting on exports. In July, shipments of goods and services from China increased by 7% compared to the result for the same period last year. At the same time, analysts interviewed by the media predicted that this figure would grow by 9.7%. Chinese exports continue to be on a growth trajectory, but face pressure factors such as trade tensions between Beijing and Western capitals and concerns about the implementation of a recession scenario in the United States economic system, the potential materialization of which will have global consequences.
