Producer prices, imports tumble in July
China’s producer prices continued to fall in July, pointing to a looming deflation risk, data from the National Bureau of Statistics (NBS) showed.
The producer price index (PPI), a measure of costs for goods at the factory gate, fell 5.4 percent year on year in July, widening from the 4.8 percent drop seen a month earlier. The July reading dipped to the lowest level since the end of 2009 and marked the 41st straight month of decline.
In a sign of weak demand, China’s imports nose-dived by 8.6 percent in July. A sharp decline of 8.9 percent in exports also cast a shadow on the world’s second-largest economy.
To make things worse, major commodity prices are lingering at a multi-year low, and there are no signs of quick recovery. Prices of production materials fell 6.9 percent, while those of consumer goods edged down 0.3 percent.