- Analytics
- News and Tools
- Market News
- China: Inflation pressure subsides in June - UOB
China: Inflation pressure subsides in June - UOB
FXStreet reports that an economist at UOB Group Ho Woei Chen, CFA, reviews the recently published inflation results in the Chinese economy.
“China’s Producer Price Index (PPI) and Consumer Price Index (CPI) inflation moderated in June.”
“Domestic measures to contain commodity price gains may have helped to stabilize the PPI but elevated global crude prices and higher freight costs as a pick-up in seasonal demand towards year-end exacerbates the tight supply chain which in turn may further contribute to the price pressure. The PPI inflation is likely to stay elevated in 2H21 and we maintain our full-year forecast of 7.5% (2020: -1.8%).”
“The pass-through to CPI may continue to stay muted due to a more gradual recovery in demand. The headline inflation may slip slightly below 1.0% y/y in 3Q21 before rebounding in 4Q21. With 1H21 CPI inflation averaging just 0.5%, we have revised down our full-year 2021 CPI forecast to 1.1% from 1.9% (2020: 2.5%).”
“We see scope for a targeted reduction in RRR in 3Q21 while we maintain our expectation for the Loan Prime Rate (LPR) to be kept unchanged this year with the 1Y LPR and the 5Y & above LPR at 3.85% and 4.65% respectively.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
