China’s July factory inflation eases to three-month low

China’s producer price inflation eased more than expected in July to its weakest in three months, while consumer inflation also cooled, reports Reuters. This comes as global energy prices retreated despite the US-Israel war against Iran.

The producer price index rose 3.5% from a year earlier in July, National Bureau of Statistics data showed, easing from 4.1% in June to its lowest in three months. The core consumer price index, which ​excludes volatile costs for food and energy, rose 0.9% on year, food prices fell 1.5%. From the previous month, CPI edged down 0.1%, compared ​with an expected 0.2% gain and following a 0.3% dip in June.

China’s leaders, confronting a two-speed economy of strong factory output and exports but weak domestic demand, have pledged to bolster ​growth by accelerating fiscal spending on already budgeted infrastructure projects through year-end.