People walk past buildings in Shanghai, Shanghai, China, on Friday, April 21, 2023.
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Inflation in China stayed at low levels in May, as a disappointing recovery from its strict Covid lockdown measures were driven by softening demand and falling exports.
China has maintained a low interest rate in contrast with other major economies that have hiked rates aggressively to fight inflation. Just this week, Canada and Australia defied expectations and raised interest rates.
Producer price index in May fell 4.6%, compared to a decline of 3.6% in April. A Reuters poll showed economists expected to see a decline of 4.3% in producer prices.
The reading marked the steepest year-on-year drop in seven years.
Consumer price index in May rose 0.2% May compared to a year ago, government data showed. Economists surveyed by Reuters expected a 0.3% rise. CPI in April was at a two-year low of 0.1%.
Month-on-month, prices fell 0.2% — economists predicted a 0.1% decline.
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This story originally appeared on CNBC
