Major Macro Economic Statistics

 Fiscal revenue: +26.7%

Data and Graphic 

China's CPI up 6.5% in July 

China's Consumer Price Index (CPI), a main gauge of inflation, accelerated to 6.5 percent in July, the National Bureau of Statistics (NBS) said on Tuesday.

China's inflation accelerated to a 37-month high in July on surging food costs, putting the government in a tough position with worsening global liquidity in sight.

The stubbornly high inflation rate has been driven by increasing food costs, which rose by 14.8 percent in July from a year ago. The price of pork, a staple food in China, soared by nearly 57 percent in July.

On a month-on-month basis, the CPI increased 0.5 percent over that of June. [Full story] 

China's PPI jumps 7.5% in July

China's Producer Price Index (PPI), a major measure of inflation at wholesale level, rose 7.5 percent in July year-on-year, the National Bureau of Statistics said Tuesday.

July's PPI growth was even greater than June's 7.1 percent increase, the NBS said in a statement on its website.

Producer purchase prices rose by 11 percent year-on-year in July, but rose by just 0.1 percent on month-on-month basis, according to the NBS.

Prices of production materials in July rose 8.4 percent year-on-year, but remained flat on a month-on-month basis. [Full story]

July slowdown, but economy is still on track

China's major economic indicators slowed in July, but signaled the country's growth engine remains on track, analysts said.

The year-on-year growth in industrial output decelerated slightly to 14 percent in July, 1.1 percentage points lower than in June, the National Bureau of Statistics announced on Tuesday.

However, that figure is still higher than the historic low of 13.3 percent registered in May. Industrial production grew 14.3 percent from January to July, maintaining the pace set in the first half of the year. [Full story]

Urban fixed asset investment increases by 25.4%

Fixed asset investment, a primary driver of economic growth, soared by 25.4 percent year-on-year during the first seven months of the year to 15.24 trillion yuan ($2.36 trillion).

That was slightly lower than the reading of 25.6 percent recorded in June. [Full story]

Retail sales rises 17.2% in July

Retail sales followed a similar pattern, rising a solid 17.2 percent year-on-year, but still lower than June's gain of 17.7 percent, according to the National Bureau of Statistics. [Full story]

PMI falls a fourth consecutive month 

China's official purchasing managers' index (PMI), a key gauge of manufacturing activity, fell for a fourth straight month to a 29-month low of 50.7 in July, while releasing positive signs for economic growth.

According to data released by the China Federation of Logistics and Purchasing (CFLP) on Monday, the official PMI dropped by 0.2 point from June's 50.9.

In May, it had fallen by 1.1 points from 52. A PMI of 50 or greater indicates growth and less than 50 indicates contraction. [Full story]

China's exports up 20.4% in July

China's exports in July rose 20.4 percent from a year ago to reach $175.128 billion, the General Administration of Customs (GAC) said on Wednesday.

China's trade surplus rose sharply to $31.48 billion in July from June's $22.27 billion.

Imports increased 22.9 percent from a year ago to $143.64 billion, up from June's 19.3 percent. [Full story]

Fiscal revenue up 26.7% in July

China's Ministry of Finance said on Thursday that the country's fiscal revenues rose 26.7 percent year-on-year to 986.41 billion yuan ($154.13 billion) in July.

The central government posted revenues of 522.86 billion yuan last month, a rise of 24.5 percent year-on-year, the ministry said in a statement on its website. Local governments claimed the rest of the money.Expenditures increased by 19.6 percent from one year earlier to hit 694.99 billion yuan last month.

For the first seven months of this year, the country's national fiscal revenues jumped 30.5 percent from a year earlier to reach 6.67 trillion yuan. [Full story]

  FDI flows to China still strong

Total FDI jumped 18.6 percent year-on-year in the first seven months to $69.2 billion. Foreign investors set up about 15,600 new companies during the period, up 7.89 percent.

Investment from the European Union in China between January and July recorded a year-on-year growth rate of just 1.36 percent to $4.08 billion

Comments & Opinion 

Inflation reaches 3-yr high at 6.5%

China's inflation rate hit a three-year high in July, posing challenges to policymakers amid turmoil in the global financial markets.

The consumer price index (CPI), a key gauge of inflation, rose 6.5 percent in July year-on-year, driven mainly by soaring food prices which climbed 14.8 percent from a year earlier, the National Bureau of Statistics (NBS) said on Tuesday. [Full story] 

Policies may be eased to ride out turmoil

As China's top officials called for "flexibility" in macroeconomic regulation, the country could resort to "targeted easing" to help it through the fallout of the current global financial turmoil, analysts said.

On Tuesday, Premier Wen Jiabao told a meeting of the State Council that China will improve the flexibility of its economic policies and make them more targeted and "farsighted".[Full story] 

No time for complacency

The combination of soaring consumer prices at home and the worsening global economic outlook has ostensibly added a further complication to China's endeavor to keep economic growth on track while preventing overheating.

As the world's second largest economy, China will have no chance of maintaining its growth momentum amid a global recession. So Chinese policymakers will have to keep a watchful eye on external weakness and the volatility of global markets. [Full story] 

China's monetary policy may change in H2

China will maintain a prudent monetary policy in the second half of the year, according to information released from internal conferences of financial regulators, China Securities Journal reported Thursday.

As inflation may soon hit a peak, China is considering adjusting to a "directional loose" monetary policy by relaxing restrictions on financing, especially in the sectors of agriculture, small and medium-sized enterprises and affordable housing, the report said. [Full story] 

Surplus rises on surprise export surge

China's trade surplus for July hit $31.5 billion, the highest in two and a half years, thanks to higher-than-expected export growth, especially to the European Union.

The surplus eased fears that the US and European debt crises might hurt global demand for Chinese goods.[Full story] 

China inflation in mild, controllable range 

China's consumer prices are currently within a mild and controllable range after measures to fight inflation have demonstrated some initial effect, a senior government official said Tuesday.

Zhou Wangjun, vice director of the National Development and Reform Commission's pricing department, reiterated that the current round of inflation is approaching a turning point after rising 25 months, and price rises will likely ease for the rest of the year. [Full story]