MNI BRIEF: China PPI Decline Expected To Narrow In H2

MNI (MNI (BEIJING)) - China's PPI decline will narrow in H2 from July's 0.8% decrease, given a forecasted reduction of price change effects, Liu Aihua, spokesperson at the National Bureau of Statistics, said at a press conference on Thursday.

However, Liu expected fluctuations in PPI given international commodity price trend uncertainty and the continued adjustment in the real-estate market.

Retail sales grew 2.7% y/y in July, accelerating from June's 2.0% gain and in line with the 2.7% forecast. Retail sales grew 3.5% y/y in Jan-Jul, lower than the 3.7% in H1. (See MNI EM: Beijing Shifts Focus To Consumption To Boost H2 GDP)

Liu anticipated new policies such as aiming CNY150 billion of ultra-long-term treasury bonds towards consumer trade-in schemes would lay the foundation for a consumer market recovery.