China’s factory prices increased in July at a faster-than-anticipated rate, adding to pressure on businesses crumpling with the high cost of raw materials as consumer inflation eased slightly.
CSI 300 Index up 1.30%, CNY USD up +0.06%
The Chinese economy is on track to grow by over 8% in 2021, but supply chain bottlenecks and outbreaks of the Delta variant of COVID-19 might slow down the projected growth.
China’s producer price index (PPI) increased by 9.0% from a year earlier last month, matching the high recorded in May.
Consumer inflation slowed slightly as the consumer price index (CPI) grew by only 1.0% on a yearly basis, beating expectations of rising by 0.8%.
The world’s second-biggest economy has largely recovered from disruptions caused by the COVID-19 pandemic, but the expansion is losing momentum as businesses suffer from higher commodity prices.