Mild price rises imply monetary stability
China’s consumer price inflation remained mild in July while producer prices rose moderately, providing a boost to the industrial sector. Analysts said the country may keep its monetary policy stable given the expected stable price trends this year.
The consumer price index growth stood at 1.4 percent in July from a year earlier, compared with 1.5 percent in June, the National Bureau of Statistics said on Wednesday.
China’s CPI has remained at or below 2.5 percent since the start of 2016, well below its annual CPI growth target of 3 percent. “China’s consumer price inflation this year will be significantly lower than that of last year (which was 2 percent),” said Yan Ling, an analyst at China Merchants Securities. “The low level of inflation will not have a major impact on the country’s monetary policy.”