Overview

• Headline consumer prices were unchanged year-on-year in July, marking flat CPI for the first time since early 2024.
• The producer price index dropped 3.6% year-on-year, extending factory-gate deflation into its 34th consecutive month.
• Core CPI, which strips out volatile food and energy costs, rose 0.8% year-on-year—the strongest gain since March 2024.
• On a monthly basis, overall CPI climbed 0.4% in July, reversing June’s 0.1% decline as service and industrial goods prices edged higher.
• Authorities have launched an anti-price war campaign to curb excessive competition, but weak demand and oversupply continue to weigh on price growth.