China’s inflation picks up in August but still below target
The consumer price index came in at 0.8% as the world's second-largest economy grapples with weak domestic demand.
China's consumer and producer prices slightly increased last month but remained below the government's target, according to official data released on Wednesday. The Consumer Price Index (CPI), a key indicator of inflation, rose to 0.8% in August from 0.5% in July, matching a Bloomberg survey of economists' expectations. Beijing has been grappling with weak domestic demand since the end of the Covid-19 pandemic, which has led to a persistent slump in domestic spending.
The CPI has stayed below the current target of 2% for over three years, dipping into negative territory on several occasions during this period. Despite the weak domestic activity, prices paid at the factory gate also climbed in August, expanding 3.8% year-on-year, which was higher than the 3.5% increase in July and surpassed the 3.6% forecast by the Bloomberg survey.
These inflation readings follow data showing a surge in China's imports and exports last month, driven by increased global demand for technology products due to the AI boom. China's leaders aim for economic growth of 4.5-5.0% this year, a rate faster than most developed economies but relatively low compared to China's historical standards.
The economy expanded just 4.3% in the second quarter, below forecasts and the slowest pace in more than three years.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
