(ECNS) - Chinese economy does not experience deflation and it is not expected to occur in the next stage, National Bureau of Statistics(NBS) spokesperson Fu Linghui stated at a press conference in Beijing on Monday.
Data recently released by NBS reveals that the Consumer Price Index (CPI) in June remained flat year-on-year, while the Producer Price Index (PPI) for industrial products decreased by 5.4 percent year-on-year.
Fu explained that although prices are currently at a low level, economic growth, money supply and other indicators suggest that the Chinese economy does not meet the conditions for deflation.
Global economic recovery is overall weak in the first half of this year. Fu made the remarks that the decline in domestic energy prices, car prices and pork prices, coupled with the high comparison bases from the same period last year, lead to a decrease in CPI in the first half of this year. The CPI rose by 0.7 percent year-on-year, representing a 0.6 percentage point decrease compared to the first quarter.
He pointed out that in the first half of the year, there has been a decrease in food price increases, alongside declining energy prices, while service prices have shown a slight increase.
The core CPI inflation rate, excluding food and energy prices, remained stable, with a 0.7 percent year-on-year rise and a 0.1 percentage point quarter-to-quarter decrease, he added.
Fu said that overall, the low rise in CPI is temporary and is influenced by multiple factors affecting both international and domestic markets.
As the economic and social development has fully returned to normal in the first half year, the national economy showed a good momentum of recovery with expanding market demand and increased production supply, he further noted.
Fu pointed out that as the economic recovery continues, market demand expands, and economic circulation smooths, the market supply and demand will gradually improve.
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