Beijing: China's producer price inflation eased more than expected in July, slowing to its weakest in three months, while consumer inflation also cooled, official data showed on Sunday, as global energy prices retreated despite the U.S.-Iran war.China's leaders, confronting a two-speed economy of strong factory output and exports but weak domestic demand, have pledged to bolster growth by accelerating fiscal spending on already budgeted infrastructure projects through year-end.Also Read: China's factory inflation hits 3-year high as energy costs surgeConsumer and producer inflation "weakened in July. This is consistent with other activity data such as the PMI index, which also dropped more than expected," said Zhiwei Zhang, chief economist at Pinpoint Asset Management."The economic momentum softened in Q2. The Politburo in July signalled stronger fiscal spending as the policy response. The transmission of the fiscal spending will take time."Also Read: China's April producer inflation at 45-month peak on energy price shockThe producer price index rose 3.5% from a year earlier in July, National Bureau of Statistics data showed, easing from 4.1% in June to its lowest in three months. It was below economists' expectations for a 3.8% increase in a Reuters poll.Although some of China's upstream and high-tech sectors have maintained strong profit growth, more domestic market-facing manufacturers struggled against sluggish demand as overall economic growth lost steam. Rising input costs risk further squeezing their profit margins and dampening confidence.
China producer inflation slows to three-month low, consumer prices cool
China's producer price inflation eased more than expected in July. Consumer inflation also cooled, reflecting weaker domestic demand in the economy. This slowdown is consistent with other economic activity data released recently. Chinese leaders pledged to accelerate fiscal spending on infrastructure projects. This policy response aims to bolster economic growth through year-end.











