Deflation in China: rising sharply prices

Inflation slows sharply in China, registering the first failure in the last seven months, confirming that the deflation risk is also increased in the major Asian economy. The consumer price index increased by 2% trend in May, showing a sharp slowdown compared to the 2.3% recorded in April.

Inflation is also revealed below the 2.2% consensus and remains a far cry from the growth rates that characterized the Chinese economy a few years ago, when economic growth was closer to that of a developing country .

Then, if the figure compares with the 3% target set by Beijing, the data on inflation indicates a strong likelihood of central bank intervention in price support. On-month, consumer prices were down by 0.5% in May, following the -0.2% in April.

The Chinese statistical office also released data on producer prices, which registered a slowdown in the fall of pace, with an annual decrease of 2.8%, after -3.4% in April and -4, 3% in March. Is a monthly basis prices to industry rose by 0.5% in fact.