Overview

• July’s consumer price index was unchanged year-on-year, surpassing forecasts of a modest decline and marking a flat reading after June’s 0.1% rise
• Core CPI, which excludes food and energy, jumped 0.8% year-on-year—the largest increase since March 2024—led by stronger services and select industrial goods
• The producer price index fell 3.6% year-on-year for the 25th consecutive month, matching June’s near two-year low and underscoring persistent factory-gate deflation
• Food prices dropped 1.6% year-on-year while service prices edged up 0.5%, reflecting uneven demand pressures across consumer sectors
• Authorities have launched an anti-price-war campaign and are considering additional demand-boosting measures to tackle overcapacity and revive domestic consumption