China: Economic Numbers Weaken, Inflation Slows. Does Deflation Await?

June 9th, 2012
in econ_news

Econintersect: A deluge of economic numbers have been released in China and the overall effect is that the economy is weakening, but not as much as balloon-deflatingSMALLsome had feared after the PBoC (People’s Bank of China) cut interest rates earlier this week. (See GEI News.) One of the most important numbers was the official May inflation rate from the National Bureau of Statistics (NBS). CPI (Consumer Price Index) was up 3.0% year over year while PPI (Producer Price Index) was down 1.4% from a year ago. Both numbers were weaker than expected. Inflation has fallen sharply over the past year. Just ten months ago CPI was 6.5% and PPI for final goods was 7.5%. The intermediate goods PPI was 11.0% last July. The data for 1Q 2012 showed the PPI for agricultural products down 5.6% year-over-year and 9.4% in six months (-18.7% annual rate).

Follow up:

No one seems to be commenting on it but the rapidly deflating PPI numbers should start raising the possibility that China could enter deflation.

Some of the other data announcements:

  • Industrial output rose 9.6% (9.9% expected).
  • Food inflation remained high at 6.4%, despite large declines in the PPI for agricultural products.

Below are the latest charts published by the NBS which contain data only through April.

China-CPI-2012-AprilChina-PPI-manufact-2012-April

John Lounsbury

Sources:









Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.















 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved