Pro­ducer prices, im­ports tum­ble in July

China Daily (Canada) - - FRONT PAGE -

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.

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