Data of the National Bureau of Statistics showed that inflation-expected/” title=”The "Dow Jones" rises more than 500 points due to the "low …" expected”>Consumer price index 0.1 percent increased last month on an annual basis, after a decrease of 0.1 percent in May, which is more than the expectations of analysts that Reuters were able to opinions that there was no change.
The consumer price index fell 0.1 percent on a monthly basis, compared to a decrease of 0.2 percent in May, in line with economists’ expectations, a decrease of 0.1 percent.
External Producers price index 3.6 percent in June a year ago, in an increase of 3.3 percent in May, while the largest decrease since July 2023 was expected. The Reuters poll expected the index’s decrease 3.2 percent.
Trade pressure affects export industries in China
The export -based Chinese sectors face escalating challenges due to the opposite winds in world trade, as manufacturing prices for the computers, communications and electronic equipment sector recorded an accelerated decline during the past month, in reference to the weak global demand.
The uncertainty caused by the customs duties policies pursued by US President Donald increased Trump It is a darker scene in front of companies that depend on foreign markets, especially with the local demand remaining weak.
Dong Leguan, the chief statistical in the Chinese National Bureau of Statistics, said that the decline in the prices of producers is partly due to the bad weather conditions that affected the activity of the construction sector, which put pressure on the prices of raw materials, according to Bloomberg News.
The selling prices from factories for mining and coal washing sector recorded an annual decline by 22%, which is the largest rate of decline since 2007, and the authority attributed this decrease to the expansion of the use of renewable energy sources, which led to a decrease in demand for coal.
On the other hand, consumer prices witnessed a slight increase as a result of the recovery of oil prices and some industrial goods, as their annual decline reduced from 1.0% to 0.5%.
In the details of consumer spending, the prices of gold and platinum jewelry increased by 39% and 16%, respectively, and the prices of home textiles and electrical appliances increased noticeable, while the decline in the prices of cars compared to the previous months.
It is likely that the electronics and cars sectors have benefited from a major government program to support the purchase, although the program was subjected to a temporary pause in several provinces last month as a result of the dedicated funding from the central government. The authorities have since pledged to pump additional funds to revive the program.
But economists have warned that Beijing needed more sustainable steps to revive consumer confidence. A new indicator of consumer confidence issued by “Bloomberg Economics” showed that increasing political support since late 2024 has not been translated into tangible improvement in the general mood, due to limited improvement in employment opportunities and income growth.
The deflationary pressures were also exacerbated by the surplus production capacity in a number of sectors. Despite the pledges of Chinese leaders to reduce production in some industries, analysts warned that “price wars” may continue for years, as local officials seek to avoid demobilization of workers to avoid their social repercussions.