Overview

• Producer prices fell 3.6% in June from a year earlier, marking the largest drop since mid-2023 and extending a 29-month deflation streak.
• Consumer price index edged up 0.1% in June after four months of declines, while core CPI rose 0.7%, its strongest increase in 14 months.
• Profits at industrial firms plunged 9.1% in May from the prior year, recording the steepest fall since October 2024.
• A Politburo meeting chaired by Xi Jinping criticized excessive price competition and urged businesses to upgrade quality and phase out outdated capacity.
• Leaders have held off on broad stimulus measures and are instead focusing on tighter rules for price wars and capacity cuts pending export trends.