China’s economic risks build as Delta cases spread, prices gain

Rising prices: A vendor sells cooked meat at a market in Shenyang, China. Core consumer price index rose 1.3% in July from a year ago. — AFP

BEIJING: China’s economic risks are building in the second half of the year, with growth set to slow while inflation pressures are picking up, clouding the outlook for central bank support.

A report yesterday showed factory-gate inflation surging again to 9% in July as commodity prices climbed, while core consumer prices – which strip out volatile food and fuel costs – rose the most in 18 months. At the same time, the spread of the Delta variant is threatening China’s growth outlook, with Goldman Sachs Group Inc downgrading its forecast for the third quarter and full year.