This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

China's June Inflation Rises To 2.7 Percent

By JOE McDONALD

BEIJING (AP) â¿¿ China's inflation rose in June but was well below the government's target in a sign of weak demand amid an economic slowdown.

Consumer prices rose 2.7 percent over a year earlier, up from May's 2.1 percent gain but below the 3.5 percent official target for the year, the government reported Tuesday. The June figure was driven by a 4.9 percent rise in food costs.

Pressure for prices to rise is relatively low in China because of weak demand, excess production capacity in many industries and lower costs for raw materials and components.

June prices were unchanged from May levels, and the uptick in the inflation rate was due to comparison with unusually low prices last year, according to Alaistair Chan of Moody's Analytics.

"The inflationary environment in China remains largely nonexistent," Chan said in a report. "Non-food inflation is low, reflecting a large output gap and lack of policy stimulus."

Economic growth slowed to 7.7 percent in the first quarter of this year from the previous quarter's 7.9 percent. Some forecasters say it could dip below 7 percent in coming quarters due to government efforts to cool a credit boom and weak demand for Chinese exports.

Communist leaders are trying to shift the basis of China's economic growth from exports and investment to domestic consumption. They have refrained from launching new stimulus spending even as economic growth drifted down.

Producer prices declined 2.7 percent in June compared with a year earlier, the National Bureau of Statistics reported. That was driven by an 8.5 percent fall in the price of goods from the mining industry and weaker costs for other industrial raw materials.

"This trend will continue through to year end, judging by the government's signals and the outlook for global growth," said Chan of Moody's.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SYM TRADE IT LAST %CHG
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%

Markets

Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs