Economic recovery: price increases in China accelerate

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Chinese supermarket: central bank focuses on debt control

The price development in China continues to indicate an economic recovery after the Corona slump. In July, the rise in consumer prices accelerated for the third month in a row, the inflation rate rose to 2.7 percent, as the national statistics office announced in Beijing on Monday.

In June consumer prices were up only 2.5 percent year-on-year and in May by 2.4 percent. At the turn of the year, the rate of price increases was about twice as high. This increased the general price development after the Corona low in May. The rise in consumer prices in July was also somewhat stronger than expected.

In addition to consumer prices, the development of producer prices also provided indications of a further economic upturn. The prices that companies charge from other companies fell in July with a minus of 2.4 percent no longer as sharply as in June (minus 3.0 percent).

Commerzbank: China's monetary policy will be less relaxed in the future

Expert Hao Zhou, an analyst at Commerzbank, referred to statements made by the Chinese central bank president Yi Gang at the weekend. The central bank governor said in an interview that China would hold on to an appropriate amount of money in the coming months. According to the Commerzbank expert, the statements indicate that the central bank is focusing more on debt control and that monetary policy will no longer be as loose as in the Corona crisis.

The Corona crisis hit China earlier than other leading industrialized countries and drastically slowed down large parts of the world's second largest economy. Most recently, however, many economic data have shown an improvement in the situation.

caw / dpa-AFX