Yi said he expected the consumer price index to “converge above zero by the end of the year,” while the producer price index would likely reach zero, after negative prints in recent months.<\/p>\n

The core CPI, which strips out food and energy prices, rose by 0.4% in July from a year ago, down from 0.6% in June and May.<\/p>\n

Yi was PBoC governor from March 2018 to July 2023. Pan Gongsheng is the current head of China’s central bank.<\/p>\n

Zou Lan, director of the PBoC’s monetary policy department, told reporters Thursday the central bank still had room to lower the reserve requirement ratio, which determines the amount of cash banks need to have on hand. It is just one of the PBoC’s several monetary policy tools.<\/p>\n

In July, Chinese policymakers announced major support for a trade-in policy to boost consumption. While central and local authorities have also taken steps to bolster the massive real estate market, sales and investment in new properties have still fallen.<\/p>\n

“The challenge for Chinese policymakers is to manage the housing crisis, and to ensure that there is enough domestic demand to maintain the high level of economic growth,” Jeffrey J. Schott, senior fellow at the Peterson Institute for International Economics, told reporters Thursday.<\/p>\n

“That is so important for the Chinese economy and for moving more and more people up to higher standards of living,” he said.<\/p>\n<\/div>\n