Chinese inflation slows to 2.2%
China’s inflation rate slowed to 2.2 per cent in June, according to the latest official statistics.
That rate is down from 3 per cent in May and is well below the government target of 4 per cent.
The cut in CPI comes quickly on the back of the decision of the Chinese central bank to cut interest rates last week by 0.31 per cent to 6 per cent. It was the second time the bank had cut rates inside a month.
The Chinese central bank has also lowered banks’ required reserves in three 50 basis point steps since November 2011, freeing an estimated £122bn for lending.
The inflation figures kick off a week of significant economic indicator releases for the Chinese economy, culminating on Friday with the scheduled publication of GDP growth data for the second quarter of the year.
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