PBoC survey reveals high inflation expectations

A survey conducted by the People’s Bank of China showed that inflation expectations among Chinese people remained high in the April-June period, the Wall Street Journal reported. Some 68.2% of depositors felt that inflation was “too high to accept,” a 1.3% increase from the first quarter of the year. Just under half – 45.4% – expected prices to keep rising, down 1.7% from the previous quarter. In the banking sector, 65.5% of bankers expect the central bank to maintain its tight monetary stance in the third quarter, and 68.2% expected further interest rate hikes. China’s government has struggled to contain inflationary expectations in recent months. In a high-profile recent move, it slapped consumer goods maker Unilever (UL.NYSE, ULVR.LSE) with a fine for saying that it would raise prices on its products.