Beijing (dpa) - The inflation level in China shrunk unexpectedly in August as domestic demand eased amid intensified coronavirus lockdowns in the country.
Consumer prices rose 2.5% from a year earlier, the statistics bureau reported on Friday. Producer prices also rose by just 2.3%, despite expert predictions of a sharper increase.
The figures reflect lower consumer sentiment and open the door to further monetary easing. The central bank has already cut interest rates to boost the economy, which is suffering from a combination of Beijing’s dogged pursuit of its zero-Covid policy and China’s real estate crisis.
The government in Beijing had set a 5.5% growth target, but experts now believe the country can expect a growth level of around 3.5%.
GNA