China July CPI and PPI tumbled

China-CPI-and-PPI

China CPI and PPI year-on-year increase in July experienced the sixth consecutive month of negative growth ever since February, 2009.

China Consumer Price Index (CPI) – fell 1.8% year-on-year in July, an official at the National Bureau of Statistics said at a press conference today.

The CPI fell 1.7 percent in June year on year.

The Producer Price Index (PPI) - which measures inflation at the wholesale level, fell 8.2 percent year on year in July. It showed a month-on-month increase of 1 percent.

The July decline compared with a 7.8-percent drop in June and 7.2-percent drop in May year on year.

“We are persisting with implementing active fiscal policies and appropriately relaxed monetary policies because we still face many hardships and challenges, the international economic outlook remains unclear, and pressure from falling external demand remains heavy,” said China Premier Wen Jiabao, according to the central government’s website .

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