Is China’s inflation rebound losing steam?
Data released on Monday showed that China’s inflation steadied in June, raising questions whether the latest rebound is losing steam.
The graph shows that the China’s producer prices index has formed a peak, while the CPI index is steadying after rebound.
PPI soared 5.5 percent in the year through June, similar to analysts’ forecasts, after climbing to 7.8 percent four months earlier.
CPI for the same period rose 1.5 percent, compared to projections of 1.6 percent surge.
Meanwhile, there are concerns that global inflation is heading to a slowdown, which would yield in deceleration in the growth pace.
Unlike retreats in inflation in U.S., euro area and Japan, strong demand helped China’s PPI to remain steady.
However, some economists predict PPI to end the year at weaker pace of 5.3 percent and to slow more in 2018 to 2 percent due to lower commodity prices and regulatory curbs
As of 08:16 GMT, the
dollar was 0.04 percent lower versus the Chinese yuan, as the USDCNY traded at