Data released by China’s National Bureau of Statistics on Wednesday, June 10, showed that the annual consumer price index (CPI), a key measure of inflation, rose in May at 1.2% year-on-year, unchanged from April. This figure fell short of market expectations of 1.3% growth. Wholesale prices rose at their fastest pace in four years, driven by higher raw material costs due to the Iran war. The producer price index (PPI) reached its highest level since 2022.

Meanwhile, the core PPI, which excludes volatile food and energy prices, rose to 1.1%, compared to a 1.2% increase in April.

Separately, China’s producer price index (PPI) entered positive territory for the third time since 2022, ending a 41-month period of deflation. It grew by 3.9% year-on-year in May, compared to a 2.8% increase in April, matching expectations and reaching its highest level since March 2022.