China’s headline CPI registered 0.0% yoy in July, slipping from June’s 0.1% yoy but avoiding the small -0.1% yoy decline economists had forecast. Core inflation picked up to 0.8% yoy, the highest since February 2023, driven largely by firmer service prices which went up 0.5% yoy. Food prices fell -1.6% yoy.
On a monthly basis, CPI rose 0.4% mom, with the statistics bureau noting visible results from measures to expand domestic demand.
PPI stayed deep in deflation at -3.6% yoy for a second month, extending its contraction streak to 34 months. The NBS attributed the weakness to seasonal factors and global trade uncertainties. On a monthly basis, PPI slipped -0.2% mom.
