Chinese producer prices fell sharply again in July, mainly due to lower prices in the oil and energy sectors. According to the statistics office, prices charged by Chinese manufacturers for their products decreased by 2.4 percent on an annual basis last month.
Economists expected a slightly larger fall in prices, of 2.5 percent. In June, producer prices were already down by 3%. The corona crisis is putting pressure on the world’s demand for Chinese goods, which in turn causes weaker prices, with lower energy prices on top of that. Economists expect this weak price environment to continue for the time being.
There were also figures on inflation in China. It was 2.7% in July on an annual basis, compared with 2.5% in June.