Overview

• China’s CPI was unchanged year-on-year in July, surpassing market forecasts of a slight decline.
• Month-on-month consumer prices climbed 0.4% thanks to targeted measures aimed at boosting domestic demand.
• Producer price index fell 3.6% year-on-year in July, marking nearly three years of factory gate deflation.
• Food prices dropped 1.6% over the year even as service prices edged up 0.5%, reflecting divergent sectoral trends.
• Weighing on broader inflation, sluggish domestic consumption, property sector challenges and trade uncertainty continue to pressure price growth.