China consumer inflation falls to 1.2pc in May

AFP, BEIJING: Chinese inflation fell to 1.2 per cent in May, data showed yesterday, as Beijing struggles to boost consumer spending while analysts tipped further stimulus measures on top of the three interest rate cuts since late 2014.
The reading for the consumer price index (CPI), the main gauge of inflation in the world’s second-biggest economy, was lower than April’s 1.5 per cent, National Bureau of Statistics said.
It also fell short of a median forecast of 1.3 per cent in a survey of economists by Bloomberg News.
Moderate inflation can be a boon to consumption as it pushes consumers to buy before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can hurt growth.
Inflation has been subdued in China as economic growth slows and commodity prices have fallen, with some economists expressing worries of impending deflation.
China’s economy expanded 7.4 per cent last year, its slowest pace in 24 years and has shown few signs of a pick-up this year. GDP growth slowed to 7.0 per cent in January-March, the worst quarterly result in six years.

China consumer inflation falls to 1.2pc in May

AFP, BEIJING: Chinese inflation fell to 1.2 per cent in May, data showed yesterday, as Beijing struggles to boost consumer spending while analysts tipped further stimulus measures on top of the three interest rate cuts since late 2014. The reading for the consumer price index (CPI), the main gauge of inflation in the worlds second-biggest economy, was lower than Aprils 1.5 per cent, National Bureau of Statistics said. It also fell short of a median forecast of 1.3 per cent in a survey of economists by Bloomberg News. Moderate inflation can be a boon to consumption as it pushes consumers to buy before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can hurt growth. Inflation has been subdued in China as economic growth slows and commodity prices have fallen, with some economists expressing worries of impending deflation. Chinas economy expanded 7.4 per cent last year, its slowest pace in 24 years and has shown few signs of a pick-up this year. GDP growth slowed to 7.0 per cent in January-March, the worst quarterly result in six years.