China’s consumer inflation picks up in June

BEIJING–China’s consumer inflation accelerated in June after holding steady for two months, as food prices continued to gain strength after a long period of weakness, official data showed Tuesday.

China’s consumer price index increased 1.9% in June from a year earlier, compared with a 1.8% gain in May, the National Bureau of Statistics said.

Food prices rose 0.3% from a year earlier after climbing 0.1% in May. Non-food prices grew 2.2% on year, on par with the on-year growth in May.

The key inflation reading outpaced a 1.8% gain forecast by a Wall Street Journal poll of economists.

Higher prices of eggs and fresh vegetables boosted China’s consumer inflation last month, said Sheng Guoqing, an economist with the statistics bureau, in a statement accompanying the release. Pork prices also declined by less on-year, he added.

The government aims to keep inflation under about 3% this year.

On a month-over-month basis, the CPI fell 0.1% in June from a month earlier. In May, the index dropped 0.2% from the previous month.

The producer price index rose 4.7% in June, compared with a 4.1% on-year increase in May.

The reading for factory-gate prices came in faster than the 4.4% increase forecast by the poll of economists.

The PPI increased 0.3% in June from a month earlier. In May, it edged up 0.4% from the preceding month.

Write to Grace Zhu at [email protected]

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