China has seen mild inflation so far this year, with the average consumer price index (CPI) from January to June increasing by 0.7 percent, the National Bureau of Statistics (NBS) said Monday.
The country’s CPI came in flat in June compared to last year’s period. The figure was lower than the 0.2-percent increase in May.
In breakdown, food prices rose 2.3 percent from a year earlier while prices of non-food items edged down 0.6 percent year on year.
The core CPI, excluding food and energy prices, was up by 0.4 percent year on year.
On a monthly basis, the prices were slightly down by 0.2 percent.
“In June, the CPI was generally stable,” said NBS statistician Dong Lijuan.
Core inflation remained lower than expected in June with relatively weak demand for consumer durables, reflecting that consumer confidence needs to be improved, said Wen Bin, chief economist at China Minsheng Bank, in a co-authored note.
Although hot weather can support consumer prices, China may not be able to rule out the possibility of a brief year-on-year CPI decline, Wen said, adding that the current situation asks for more outstanding counter-cyclical adjustment efforts to stabilize and boost domestic demand.
NBS spokesperson Fu Linghui attributed the weak CPI increase in recent months to a complex global environment, sluggish world economy, weak domestic demand, and a high comparison base during the same period last year.
From a full-year perspective, with the steady expansion of China’s market demand and stable supply and demand relations, consumer prices will sustain a moderate rise, said Fu.
China will extend two financial policies supporting the stable and healthy development of the real estate market to the end of 2024, according to a notice released by the People’s Bank of China and the National Administration of Financial Regulation on Monday.
China’s financial authorities rolled out a 16-step guideline last November to beef up policy support for the housing sector. The country will now extend relevant policies to Dec. 31, 2024, the notice said.
The purpose of the move is to guide financial institutions to continue deferring loan payments for real estate enterprises, while propping up financial support for the real estate enterprises to ensure the delivery of housing projects, according to the document.
The notice said the extended financial policies focus on two areas: supporting the reasonable deferral of property development loans and credit loans, and encouraging financial institutions to provide policy support for special loans that ensure the delivery of housing projects.
