China’s consumer value was flat Y/Y in July, as government efforts to curb excessive competition offered some relief from deflation pressure. Analysts warned that the path out of deflation would be longer and may require strong stimulation measures.
Consumer Price Index (YOY) (July) 0.0%,
- No change from a year ago, beating the forecast for a small decline
- Another month without negative reading
- Expected -0.1%, East +0.1%
Consumer Price Index (MOM) (July) +0.4%
- Expected +0.3%, East -0.1%
Manufacturer Price Index (Yoy) (July) -3.6%
- Factory-gate prices kept falling
- Producer Deflation for the 34th consecutive month in manufacturer price index
- Expected -3.3%, East -3.6%
Officials have launched a campaign to curb the price wars (Chinese policy shifts in “Anti-identity” that is squeezing the company’s profits and wages, but analysts have warned that there are deep problems. Domestic expectations for future prices have weakened, and GDP deflator-economy-wide prices have fallen for nine straightforward quarters, the longest decline in decades.
