🇨🇳 CHINESE CONSUMER INFLATION RISES BUT PRODUCER PRICES FALL

🔸 CPI rose 0.7%, the highest level in nearly 2 years.
🔸 The PPI fell by 2.2%, indicating that businesses are still struggling.
🔸 These two indicators measure two different things, so they can go in opposite directions.
• CPI measures the price people have to pay.
• PPI measures the price the factory receives.
🔸 Food and service prices increased thanks to demand stimulus.
🔸 On the contrary, the factory has to reduce prices because of competition and trade pressure.

For example, flour suppliers are facing difficulties, the competition is very high, so they have to reduce the selling price of flour to (PPI giảm). But the price of cakes at the shop increased (CPI tăng) because more customers wanted to buy cakes and costs such as rent, electricity, and labor all increased.

🔸 Thanks to strong exports, China is still aiming for 5% growth, but the recovery process is still weak and unbalanced.#JoinCreatorCertificationProgramToEarn$10,000