China expects moderate price gains after 0.9% CPI rise, says weather impact manageable

China's National Bureau of Statistics said on August 17 that consumer prices should keep rising at a moderate pace in the second half, while the economic effects of July heat waves, heavy rain, typhoons and floods remain manageable. Wang Guanhua said CPI rose 0.9% and core CPI 1.1% in the first seven months, with services consumption and pro-consumption policies supporting a reasonable price recovery, while Fu Linghui said January-July industrial output rose 5.3%, the services production index 4.7%, the surveyed urban unemployment rate was 5.2%, imports and exports grew 17.3%, and foreign exchange reserves stayed above $3.4 trillion. Fu said new growth drivers led by the digital economy contributed more than 40% of first-half growth and 50% of industrial growth in the first seven months, though he cautioned that the external environment remains complex and China's imbalance between strong supply and weak demand is still relatively pronounced.

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