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Chinese consumer confidence drops in June

Updated: 2011-07-12 09:08

(Xinhua)

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BEIJING - Chinese consumers' confidence dropped in June largely due to rising food prices, according to an index released on Monday.

The Bankcard Consumer Confidence Index (BCCI), compiled by Xinhua News Agency and China UnionPay, a national bank card association, stood at 86.06 in June, down 0.24 points from the previous year and down 0.05 points from May.

The report attributed the drop in consumer confidence to continuous increases of food prices, represented by agricultural produce prices.

Statistics from the National Bureau of Statistics (NBS) showed food prices climbed 14.4 percent in June year-on-year. Pork prices soared the most, 57.1 percent, in June year-on-year.

The inflation data, the Consumer Price Index (CPI), went up 6.4 percent in June year-on-year, a three-year high.

According to data from the Ministry of Agriculture, the wholesale price index of agricultural produce rose to 194.5 at the end of June from 187.2 at the month's beginning -- the largest hike this year.

Meanwhile, consumer spending on non-essential items declined last month, pushing the index lower, the report said.

A string of macroeconomic policies introduced by the government to ease inflationary pressures will help stabilize consumer confidence, the report said.

Xinhua News Agency and China UnionPay started compiling the BCCI index in April 2009. The index is based on bank card transaction data and analyses of structural changes in urban consumption.

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