BEIJING (Reuters) – Inflation at China’s factory gates eased to a six-month low and consumer price rallies also slowed in January amid weakening demand in the housing sector, further curbs on the coronavirus and government efforts. to contain raw material costs.
The producer price index rose 9.1% in January from a year earlier, the National Bureau of Statistics said on Wednesday, compared with an expectation of 9.5% in a Reuters poll and a 10.3% increase in December. It was the weakest reading since July.
While rising producer prices in the world’s second-largest economy remain elevated due to supply issues, relatively benign consumer inflation contrasts with cost pressures in other economies.
Analysts believe that weakening inflation makes room for the central bank to ease monetary policy to support the economy, even as monetary authorities in other countries are tightening.
“Inflation concerns should not prevent further monetary policy easing measures (by the People’s Bank of China),” said Sheana Yue, economist at Capital Economics.
China’s consumer price index rose 0.9% last month from a year earlier. Economists polled in a Reuters poll had expected a rise of 1%, after rising 1.5% in December.
“Lower inflation reflects weak domestic demand,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “Macro policies are supportive but it takes time for the impact to be transmitted to the economy.”
(Reporting by Liangping Gao, Ryan Woo and Stella Qiu)
know more
+ Omicron: Unexpected symptom of infection in children worries medical teams
+ Mercadão de SP vendors threaten customers with fruit blow
+ Video: Mother is attacked on social media for wearing tight clothes to take her son to school
+ Horoscope: check today’s forecast for your sign
+ What is known about fluorone?
+ Trick to squeeze lemons becomes a craze on social media
+ ‘Ichthyosaur-monster’ is discovered in Colombia
+ One twin became vegan, the other ate meat. Check the result
+ See which were the most stolen cars in SP in 2021
+ Expedition identifies giant squid responsible for ship sinking in 2011
+ US Agency warns: never wash raw chicken meat
#Inflation #China #slows #January #opens #space #monetary #easing