Investing.com — China's consumer price index inflation rose more than expected in July following a series of unexpected interest rate cuts by the People's Bank of China, while producer price index inflation fell at a similar pace to the previous month.
China's economy grew 0.5% year-on-year, data from the National Bureau of Statistics showed on Friday, slightly above expectations of a 0.3% increase and up from a 0.2% increase in the previous month.
The rise in inflation follows several additional measures taken by Beijing to boost domestic liquidity conditions, mainly interest rate cuts by the People's Bank of China.
But Friday's figures come after the Chinese government vowed to roll out further economic support measures in July, particularly aimed at boosting consumer demand.
However, despite the improvement in July's figures, China's inflation remains broadly sluggish due to high unemployment, a persistent slowdown in the property market and weak consumer sentiment.
Inflation fell for the 22nd consecutive month, but the pace of decline remained at its slowest since January 2023. Producer Price Index (PPI) inflation fell 0.8% year-on-year, slightly more than expected of a 0.9% decline and unchanged from a 0.8% decline in June.
China's manufacturing industry fell further into contraction territory in July, latest data showed, as the sector, the country's main economic engine, struggles with sluggish demand for nearly four years.
