Chinese prices inch past expectations in June

Disinflationary pressures in China were slightly less than expected in June.

Factory gate prices declined at a 2.6% year-on-year clip last month, according to the National Bureau of Statistics, a tad less than the 2.8% fall observed in May - their smallest drop since the end of 2014.

Producer prices were buoyed by a rebound in property sales and higher prices for commodities. Prices for mining products and raw materials fell by 8.2% from a year ago, their slowest fall since two years ago.

Consumer prices on the other hand advanced at a slightly slower pace than in May, registering a year-on-year rise of 1.9% in comparison to May´s gain of 2.0% and versus economists´ forecasts for a 1.8% increase.

Food price inflation eased from 5.9% year-on-year pace in May to 4.6% in June, while those for non-food products increased by 1.2%.

Sunday´s data was published ahead of figures due for release on 15 July which were expected to show that the rate of expansion in the country´s gross domestic product slowed from a 6.7% clip over the first three months of the year to 6.6% in the second quarter.