The consumer inflation rate in China rose to 1.4 percent in June, authorities said Thursday, though economists cautioned further stimulus was needed in the world's second-largest economy as upward price pressures remained subdued. The reading for the consumer price index (CPI), a main gauge of inflation, released by the National Bureau of Statistics (NBS) was higher than May's 1.2 percent and slightly above the median estimate of 1.3 percent in a Bloomberg News survey of economists.
Moderate inflation can be a boon to consumption as it pushes consumers to spend before prices go up, while falling prices encourage shoppers to delay purchases and companies to put off investment, both of which can hurt growth. Inflation has been weak in China as economic growth slows and commodity prices have fallen, with some economists raising the threat of deflation - a debilitating and sustained fall in prices.
The economy expanded 7.4 percent last year, its slowest pace in 24 years. The Asian giant has battled persistent weakness this year in mainstay indicators such as industrial production and trade, with gross domestic product (GDP) growth slowing to 7.0 percent in the first three months of 2015, the worst quarterly result in six years. China announces GDP figures for the April-June quarter on Wednesday.
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