Chinese inflation slows in August

The Consumer Price Index (CPI) in China rose 6.2% year-on-year for August, down from a 6.5% increase in July, MarketWatch reported. CPI is a main gauge of inflation published by the National Bureau of Statistics (NBS). The results were in line with expectations published by Reuters, and just above a 6.1% forecast from Dow Jones Newswires. The country’s Producer Price Index (PPI), a measure of wholesale inflation also compiled by NBS, increased 7.3% in August compared to a year earlier. This was higher than forecast, but still lower than the 7.5% rise in July. Economists now predict that Beijing is likely to ease up on tightening policies intended to rein in growth. “There will be no big macro policy change in the near future, unless economic woes in the U.S. and Europe deepen and hurt the Chinese economy significantly,” said Standard Chartered economist Li Wei.