(Beijing/Washington Comprehensive News) China's consumer price index in July has fallen into negative growth, and the industrial producer's factory price index continues to fall. It is the first time that two data have shrunk since November 2020, which further exacerbates the market in the world second in the world.The concerns of large economies of shrinking risks.
Comprehensive Luya Club and Bloomberg reported that data released on Wednesday (August 9) of the National Bureau of Statistics of China showed that the consumer price index (CPI) in July decreased by 0.3%year -on -year, slightly lower than the decline in the survey of Reuters and Bloomberg.0.4%forecast medium value, rising by 0.2%month -on -month.This is the first time since February 2021 declined, highlighting the continued downturn in China's domestic demand.
Following the year -on -year decrease of 5.4%year -on -year, the industrial producer's factory price index (PPI) continued to fall in July, a 4.4%decrease from the same period last year, and the 10th consecutive month.
The latest data further exacerbates market concerns about China's economic prospects.The Asian stock market showed a defensive on Wednesday, and the CSI 300 Index and the Shanghai Stock Exchange Comprehensive Index fell.
Xing Zhaopeng, a senior Chinese strategist at the Bank of Australia and New Bank, said that CPI and PPI have fallen to negative value year -on -year, confirming that the Chinese economy has fallen into a shrinkage.
Xing Ziqiang, chief Chinese economist at Morgan Stanley, said that China must be in a shrinking. The problem is how long it will last, depending on whether the policy makers will adopt coordinated fiscal and currency easing policies.
Chinese officials continue to dilute the risk of shrinkage in the economy.Dong Lijuan, chief statistician of the National Bureau of Statistics of China, said that the CPI declined year -on -year is staged. As the Chinese economy resumes better, market demand has steadily expanded, and the supply and demand relationship has continued to improve.To eliminate, the CPI is expected to gradually rise.
In the face of shrinkage pressure, as early as June, there was a voice requesting the central government to introduce economic stimulus policies as soon as possible;Large -scale stimulation of economic measures.
Zhang Zhiyuan, an interest rate strategyist of Overseas Chinese Bank, said that the market needs to see that Chinese officials have introduced more feasible support measures in order to maintain optimism.She said that although China has room to relax monetary policy, responsibility is in terms of finance.Otherwise, economic data is required to show signs of improvement, and this has not yet appeared.
Some analysts believe that as policy makers face the pressure of increasing currency and fiscal support, the pressure of shrinkage facing China may be temporary.
Ding Shuang, chief economist of Standard Chartered Bank Greater China and North Asian region, said that the CPI is expected to have negative growth in the short term, such as one or two months.In the second half of this year, food and energy prices are more likely to rise instead of falling, which means that the drag on CPI in the first half of the year may alleviate the drag on CPI.
