A top government-backed think tank forecast in late June that consumer prices will likely rise 2% for the year, while the long decline in producer prices will ease. China’s leaders have set an economic growth target of 6.5% to 7% for 2016. Consumer inflation has remained low compared with the official target of around 3% for this year, indicating persistently weak demand in the world’s second-largest economy. BEIJING: China’s June consumer inflation grew at its slowest pace since January as increases in food prices eased while producer prices extended their decline, reinforcing economists’ views that more government stimulus steps will be needed to support the economy. Other economists say authorities should use fiscal policy to boost growth, adding that question marks remain over the effectiveness of further monetary easing.

Source: The Star July 10, 2016 23:38 UTC