Chinese inflation slows to 2.2%
Share
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.
To receive more relevant articles like this one, why not sign up to our briefings and breaking alerts by clicking here and Follow @fundweb
