China’s July consumer prices stable

BEIJING, Aug 9 (AFP): Consumer prices in China remained stable in July, official data showed Saturday, providing a respite for the world's second-largest economy, which is facing strong deflationary pressure and fragile domestic demand.

The consumer price index-a key measure of inflation-was unchanged year-on-year in July, according to data released by China's National Bureau of Statistics.

The reading was better than the 0.1 percent fall forecast in a survey of economists by Bloomberg.

Prices nevertheless fell year-on-year in rural areas (down 0.3 percent) and for consumer goods (down 0.4 percent).

While deflation may be appreciated by consumers, it poses a threat to the broader economy as households tend to postpone purchases in the hope of even lower prices.

However, a long-term crisis in the real estate sector and high youth unemployment have been weighing on Chinese consumer sentiment for several years.