Industryweek 23752 China Factory 1 0

China Factory Gate Inflation Misses Expectations in July

Aug. 9, 2017
"The producer price gauge's steadiness appeared to be almost entirely due to the recent rally in domestic steel prices, which is unlikely to be sustained," said Julian Evans-Pritchard of Capital Economics.

China's factory price inflation remained steady for the third consecutive month in July, the government said on August 9, coming in slightly below expectations as experts warn of a further slowdown in the world's second-largest economy.

The producer price index (PPI) rose 5.5% year-on-year, according to the National Bureau of Statistics (NBS), the same as the previous two months but missing the 5.6% gain forecast in a Bloomberg News survey.

Julian Evans-Pritchard of Capital Economics warned the producer price gauge's steadiness "appeared to be almost entirely due to the recent rally in domestic steel prices, which is unlikely to be sustained in our view."

China's steel prices surged in July, which has helped lead world steel market prices higher, the China Iron and Steel Industry Association has said.

China's consumer price index (CPI), a main gauge of retail inflation, rose 1.4% year-on-year last month, down from 1.5% in June and also missing Bloomberg's forecast of 1.5%.

Consumer price inflation has been "generally stable," NBS analyst Sheng Guoqing said in a statement, adding that high temperatures and heavy rains this summer have supported vegetable and egg prices.

"With policy tightening now weighing on economic activity, underlying inflation has already begun to decline," Evans-Pritchard said.

The inflation data came a day after the release of figures showing the rate of growth in China's exports and imports.

Copyright Agence France-Presse, 2017

Popular Sponsored Recommendations

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Why DataOps may be the key to unlocking the full potential of digital transformation

Nov. 3, 2023
Read the 2023 market survey conducted by IndustryWeek

7 Crucial Steps to Improve Your OT Security

Oct. 23, 2023
Enhance OT security in manufacturing and production. Uncover the crucial steps to safeguard your operational technology. Protect against evolving threats and bridge the IT-OT ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!