China’s annual inflation rate slowed to the lowest level in more than two years in June, signalling falling demand for goods and raising the likelihood of more stimulus measures in the world’s second largest economy.
Consumer inflation fell sharply to 2.2pc from 3pc in May, data from the National Bureau of Statistics showed. It was the lowest since the beginning of 2010.
“Consumer price inflation tumbled last month. Underlying price pressures are weak and will be no constraint to further policy easing,” said Mark Williams, chief Asia economist at Capital Economics.
The sharp fall in consumer inflation in June was largely driven by a rapid slowdown in food inflation, to 3.8pc from 6.4pc in May.
Non-food inflation was unchanged at 1.4pc. China cut interest rates for the second time in less than a month last week in an attempt to prop up the slowing economy.
China's Premier Wen Jiabao has signalled repeatedly in recent weeks that the Government intends to announce further efforts to support growth.
There have been mounting concerns that the world’s second largest economy is in store for a “hard landing”, weakening demand in the country and rendering it unable to boost the world economy.
China’s export growth has been much slower than economists have forecast and annual economic growth in the first quarter was 8.1pc, the slowest rate in almost three years. Economists are prediciting growth slowed further still in the second quarter, to 7.6pc.
telegraph.co.uk
Consumer inflation fell sharply to 2.2pc from 3pc in May, data from the National Bureau of Statistics showed. It was the lowest since the beginning of 2010.
“Consumer price inflation tumbled last month. Underlying price pressures are weak and will be no constraint to further policy easing,” said Mark Williams, chief Asia economist at Capital Economics.
The sharp fall in consumer inflation in June was largely driven by a rapid slowdown in food inflation, to 3.8pc from 6.4pc in May.
Non-food inflation was unchanged at 1.4pc. China cut interest rates for the second time in less than a month last week in an attempt to prop up the slowing economy.
China's Premier Wen Jiabao has signalled repeatedly in recent weeks that the Government intends to announce further efforts to support growth.
There have been mounting concerns that the world’s second largest economy is in store for a “hard landing”, weakening demand in the country and rendering it unable to boost the world economy.
China’s export growth has been much slower than economists have forecast and annual economic growth in the first quarter was 8.1pc, the slowest rate in almost three years. Economists are prediciting growth slowed further still in the second quarter, to 7.6pc.
telegraph.co.uk
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