Chinese producer inflation hit an almost 3-year low as the industrial sector struggled to keep up with declining demand

The Chinese govt’s efforts to boost domestic consumption seem to have had little impact on inflation as the country’s economy struggles to recover from 3 years of lockdowns.

Even though Chinese demand for travel & retail goods has increased significantly in recent months, it is still far below what it was before the COVID-19 outbreak.

This year, the Chinese economy recovered in a mainly uneven manner, with growth leaning more towards the service sectors as manufacturing languished.

Following the inflation reading, the Chinese yuan reversed earlier gains and marginally declined.