China inflation nudges higher, narrowly misses forecasts

12th Jun 2024 07:57

(Sharecast News) - Inflation in China nudged marginally higher in May, official data showed on Wednesday, while producer prices eased.

According to the National Bureau of Statistics, the consumer price index rose 0.3% last month, unchanged on April and marginally below expectations for a 0.4% uptick

Month-on-month, CPI was down 0.1%, compared to April's 0.1% rise.

Producer prices, meanwhile, fell by 1.4% although that was an improvement on April's 2.5% slide. Analysts had forecast a 1.5% fall.

Producer prices have been stuck in deflation since 2022.

China's economic recovery is struggling to gain momentum, despite a range of measures announced by Beijing.

While exports have strengthened on the back of improving global demand, domestically, consumer confidence remains weak, weighing on consumption.

The protracted property crisis also continues to weigh heavily.