Mild inflation creates room to boost economy

A mild rise in consumer inflation and a smaller drop in wholesale prices in June leave ample space for more stabilization measures to prop up growth, economists said.

The consumer price index, a main gauge of inflation, rose 1.9 percent in June year-on-year, and declined by 0.1 percentage points in June compared with the previous month, official data showed, remaining below the annual target set by the central government of around 3 percent.

The producer price index, which measures changes in wholesale prices, registered a 2.6 percent drop year-on-year in June, which is smaller than the 2.8 percent drop in May.