Data from China’s National Bureau of Statistics showed early Wednesday, July 9, that the annual consumer price index (CPI), a measure of inflation, rose in June after four consecutive months of declines, reaching 0.1%, following a -0.1% decline in May. Expectations were for a -0.1% decline, as the index had been in negative territory since February, falling by 0.7%, and recorded declines of -0.1% in February, March, April, and May.
Conversely, the core index, which excludes volatile food and energy prices, rose by 0.7%, compared to a 0.6% increase in May, the largest increase in 14 months.
Concurrently, China’s producer price index (PPI) fell to 3.6% year-on-year in June, compared to a 3.3% decline in May. Expectations were for a 3.2% decline, marking the largest decline since July 2023.