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China’s central bank chief calls for ‘confidence, patience’ amid weak economic data
- Central bank governor Yi Gang said on Friday that ‘China has strong economic resilience, big [growth] potential and ample policy space’
- China’s consumer prices grew mildly in May, while factory-gate deflation deepened, adding to concerns over the economy
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China’s economic growth is on the track and consumer inflation will gradually rise later this year, central bank governor Yi Gang said on Friday, appealing for confidence and patience after weak price data triggered concerns over deflation that may hamper the post-coronavirus recovery.
May’s consumer price index (CPI) fell just short of expectations and rose by 0.2 per cent from a year earlier, up from 0.1 per cent growth in April, according to the National Bureau of Statistics (NBS) earlier on Friday.
But it is expected to rise to 1 per cent by the end of the year, said Yi, head of the People’s Bank of China (PBOC), during a field trip in Shanghai.
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Yi pointed to last year’s high oil and food prices, the base effect to blame for the very low consumer inflation in April and May, and also the lag in consumption after China’s reopening.
China has strong economic resilience, big [growth] potential and ample policy space
“China has strong economic resilience, big [growth] potential and ample policy space,” he said.
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