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China saw its factory gate data for June perform better than expected on Thursday morning. However, persistent deflation indicated that the impact from the COVID-19 pandemic still continues to linger.
The data, released by the National Bureau of Statistics (NBS), showed a 3% decrease in the Producer Price Index (PPI) year-on-year, compared to analysts’ forecast of a 3.2% drop. The decline in PPI was smaller compared to the drop of 3.7% in May.
Meanwhile, Consumer Price Index (CPI) for June fell by 0.1% month-on-month, smaller than May’s 0.8% drop. But the CPI dropped 2.5% year-on-year, compared to May’s 2.4% drop.
The data bolstered Chinese stock markets on Thursday.
The NBS said in a statement that the PPI decreased when “international commodity prices picked up, domestic manufacturing steadily recovered, and market demand continued to improve.”
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