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Chinese industrial inflation reaches new low

11 Aug 2022, 02:03 GMT+10

Beijing [China], August 10 (ANI): China's factory-gate inflation in July reached the lowest since February last year, according to the National Bureau of Statistics on Wednesday.

The country's producer price index, which gauges factory-gate prices, increased 4.2 per cent year-on-year in July, following a 6.1 per cent rise from the previous month, China Daily reported citing NBS.

It added that the carryover effect of last year's price changes contributed around 3.2 percentage points to the PPI growth, while new price increases contributed around 1 percentage point.

On a monthly basis, the Producer Price Index (PPI) declined 1.3 per cent in July.

China's consumer price index, a main gauge of inflation, rose by 2.7 per cent year-on-year in July, following a 2.5 per cent rise in the previous month, as per NBS data.

As compared to 2021, food prices increased 6.3 per cent, against a 2.9 per cent gain in June, resulting in a rise of around 1.12 percentage points in headline CPI, China Daily reported.

Meanwhile, China Evergrande Group, one of the largest property developers in the country by sales has said that it will unveil the restructuring plan within 2022, amid the constantly drowning economy due to the COVID-19 pandemic.

Earlier, the troubled property developer had promised to release an initial restructuring plan by the end of July, according to The Wall Street Journal.

Sketching out the first contours of a long-awaited restructuring plan, Evergrande Group has stated that creditors could end up with debts directly backed by some of its most valuable assets outside of China.

As of June 2021, Evergrande had more than USD 300 billion in debt and other liabilities, such as unpaid bills to suppliers. It defaulted on its dollar bonds in December, after months of liquidity problems, it reported further.

In May, Chinese Premier Li Keqiang underlined the importance of implementing policies for stabilising the economy and supporting market entities to bring the situation back to the normal track in an unusually stark warning that comes as COVID curbs have adversely impacted the second-largest economy.

Li had painted a grim picture of the job market in the world's most populous nation due to COVID-19 lockdowns. He had called the employment situation "complex and grave."He instructed all levels of government to prioritize measures to boost jobs and maintain stability, CNN reported. (ANI)

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