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China inflation grows 2.3% in June
July 9, 2014, 5:12 am

Chinese people buy their meals during their lunch break in Beijing, China Tuesday, June 10, 2014 [AP]

Chinese people buy their meals during their lunch break in Beijing, China Tuesday, June 10, 2014 [AP]

China’s consumer price index, a main gauge of inflation, grew 2.3 per cent year on year in June, down from 2.5 per cent in May, official data released on Wednesday revealed. Prices of fresh fruits jumped 19.8 per cent year on year in June.

China’s National Bureau of Statistics (NBS) announced on Wednesday the inflation rate in the world’s second-largest economy stood at 2.3 per cent in the first half of 2014.

“The lower inflation rate last month was mainly because of lesser impact from the carryover effects from last year, and fewer new factors for price gains compared to May,” said Yu Qiumei, a senior NBS statistician.

In June, inflation in the country’s urban regions grew 2.4 per cent, higher than the 2.1 percent in the rural regions, NBS data showed.

Food prices grew at a tempered rate of 3.7 per cent year on year last month, down from the 4.1-per cent growth in May. Food prices in June also declined 0.4 per cent month on month.

The meat and poultry category in general rose 1.9 per cent, pushing up the CPI by 0.14 percentage points, but the price of pork, a staple of the Chinese diet, dipped 2.7 per cent.

Prices of sea products grew 4 per cent; prices of grain went up 3.2 per cent, while fresh vegetable prices went down 1.8 per cent, the NBS said.

Non-food prices, such as those for tobacco, liquor, transport, and telecommunications, remained flat compared to May.

Analysts said price levels in China were generally in a low territory in the first half of this year amid an economic slowdown which reduced demand. They said the country is currently not faced with much pressure to control inflation, which would leave more room for the easing of monetary policies to boost growth.

 

Source: Agencies

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