Reuters: China's CPI turns positive year-on-year after 5 months, PPI decline widens
Reuters reported on July 9 that China's Consumer Price Index (CPI) rose 0.1% year-on-year in June, marking the first positive growth in five months, while the Producer Price Index (PPI) fell by a wider margin of 3.6% year-on-year, the largest drop since July 2023. According to data from the National Bureau of Statistics, the CPI declined slightly by 0.1% month-on-month, in line with market expectations, while the PPI performed worse than the 3.2% decline estimated by Reuters' survey. Analysts pointed out that the rise in CPI was influenced by seasonal fluctuations in food prices, but core inflation remained weak, reflecting insufficient domestic demand; the PPI has been negative for 21 consecutive months, highlighting the intensifying deflationary pressure in the industrial sector, and further policy support is needed to boost demand. Market attention is focused on whether fiscal and monetary policies in the second half of the year can effectively stimulate demand and alleviate downward economic pressures.
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