摘要
ECONOMY IMPROVES ACROSS THE BOARD China＇s inflation remained subdued in July,with the Consumer Price Index（CPI） rising 2.7 percent year on year,the same as in June（see Chart 1）.The latest inflation figure gives authorities some leeway to stimulate the economy with interest rate cuts or increased government spending.Meanwhile,the Producer Price Index（PPI） fell 2.3 percent,narrowing from a fall of 2.7 percent in June（see Chart 2）.Factory-gate prices suggest that demand might be strengthening after a slump that has caused producer prices to decline steadily for more than a year.While consumer inflation is not expected to be an issue this year,producer-price figures are a reflection of the severe overcapacity in many industries, necessitating further policy changes.
ECONOMY IMPROVES ACROSS THE BOARD China＇s inflation remained subdued in July,with the Consumer Price Index（CPI） rising 2.7 percent year on year,the same as in June（see Chart 1）.The latest inflation figure gives authorities some leeway to stimulate the economy with interest rate cuts or increased government spending.Meanwhile,the Producer Price Index（PPI） fell 2.3 percent,narrowing from a fall of 2.7 percent in June（see Chart 2）.Factory-gate prices suggest that demand might be strengthening after a slump that has caused producer prices to decline steadily for more than a year.While consumer inflation is not expected to be an issue this year,producer-price figures are a reflection of the severe overcapacity in many industries, necessitating further policy changes.
