According to the recent report released by China’s official statistical agency, the local consumer price index increased by 2.1% in the first half of the year relative to the same period in 2015.
To be more specific, the rate of inflation in China is slowing down. It has already slowed down to the lowest point since January, which is 1,9% year over year. In May, this was 2%. Experts say that the key reason for this consumer inflation slowdown is the fact that food prices in China started growing at a slower pace. The thing is in May food prices gained 5,9% while in June the inflation slowed down to just 4.6%.
Apparently, the Chinese rate of inflation remains below the inflation target set by the People’s Bank of China. Nonfoods got just 1.2% more expensive over the same reporting period relative to 1.1% a month before. Consumer product inflation reach 1.7% in June against May’s 2.2%.
For those of you who don’t know, the current inflation target set by the People’s Bank of China is equal to 3% to date. This leads us to believe that the current rate of consumer inflation is well below the target.
FOREX
Masterforex-V Academy experts say that the Chinese Yuan is still weakening against the U.S. Dollar within the scope of a long-term downtrend, which means that USDCNY is still rallying. For now, the currency pair is trading close to 6,6901.
The key levels of resistance are represented by such levels as 6,7000, 6,7200. At the same time, the key level of support is represented by MF pivot 6,5680, the experts say.
