China reported a 0.3% drop in consumer prices in July from a year ago, and a 4.4% year-on-year drop in producer prices in July, according to the National Bureau of Statistics Wednesday.
Second-quarter data prompted several economists to warn of growing risk of deflation — a persistent decrease in prices over time.Bloomberg | Bloomberg | Getty ImagesThe consumer price index fell by 0.3% in July from a year ago, but was up by 0.2% when compared with June, according to the National Bureau of Statistics Wednesday.
The producer price index fell by 4.4% in July from a year ago, better than the 5.4% decline in June, the data showed."Both CPI and PPI are in deflation territory," said Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, in a note following the data release. "The economic momentum continues to weaken due to lacklustre domestic demand."