Economic Watch: China’s economy stabilizes

BEIJING, Aug.  10 (NsNewsWire) — The Chinese economy is showing signs of stability but domestic demand remains fragile.

China’s consumer price index (CPI) grew 1.8 percent year on year in July, virtually unchanged from 1.9 percent in June, while the producer price index (PPI), which measures costs of goods at the factory gate, dropped 1.7 percent, the National Bureau of Statistics announced Tuesday, reports Xinhua.

Inflation remained benign, with no immediate pressure for a raise in interest rates. PPI continued what has become 52 months of decline, but the pace of the decline is lessening, according to Wang Dan of the Economist Intelligence Unit.