Monday's data showed China's producer price index, which measures costs for goods at the factory gate, fell 2.4 percent year on year in July.
The reading narrowed from the 3-percent drop in June and 3.7-percent fall in May.
On a monthly basis, overall producer prices gained 0.4 percent as industrial production continued to pick up and market demand gradually warmed, Dong said, adding that rising prices of international commodities also played a role.
Due to rebounding global crude oil prices, prices in the sectors of oil and natural gas extraction surged 12 percent last month from June, while those for the processing of oil, coal and other fuel went up 3.4 percent.
During the January-July period, factory-gate prices were down 2 percent on average compared with the same period last year.
Market supply and demand are expected to keep a balance with the accelerated recovery of economic activities and implementation of government measures to guarantee supplies and keep prices stable, said Wen. He added that consumer prices would generally be steady despite some fluctuations.
The generally stable inflation gives the government leeway to maneuver monetary policy in the coming months, with its focus shifting from an easing bias to stabilizing market entities and employment, Wen said.
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