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In Foreign Affairs

Chinese manufacturing price index is on a steep decline

10th September 2019

Chinese manufacturing price index is on a steep decline Pin It

Manufacturing prices in China continued their fall in August, while inflation in the country remained at its highest level in eighteen months. The data was made public by the national statistics office.

The prices charged by Chinese producers for their products fell by 0.8 percent last month compared to a year earlier. That is the strongest fall in three years. Here, economists had generally expected a decrease of 0.9 percent. Manufacturing prices fell by 0.3 percent in August.

Chinese manufacturers face price pressure due to trade tensions with the United States, while commodity prices also weaken. The Chinese government is taking measures to stimulate the economy, including the easing of capital requirements for banks.

Consumer prices in China rose by 2.8 percent on an annual basis in August, comparable to a month earlier. Inflation is driven by the high prices of pork.

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