MNI BRIEF: China June CPI Rises To Five-month High
China’s Consumer Price Index rose 0.1% y/y in June, ending four consecutive months of decline and reversing May’s 0.1% drop, beating market expectations for a 0.1% fall, according to data from the National Bureau of Statistics released Wednesday.
The increase was mainly driven by a rebound in energy prices. On a monthly basis, CPI fell 0.1%, a smaller decline than May’s 0.2%, as energy prices rose 0.1% after falling 1.7% the month before. Core CPI, which excludes food and energy, rose 0.7% y/y, up slightly from 0.6% in May.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| June | May | June | May | |
| Fuel | 0.3% | -3.7% | -10.8% | -12.9% |
| Rent | 0.1% | -0.1% | -0.1% | -0.1% |
| Aquatic Products | 0.7% | 0.8% | 3.4% | 2.5% |
| Vegetables | 0.7% | -5.9% | -0.4% | -8.3% |
China’s Producer Price Index fell 3.6% y/y in June, the lowest since July 2023 and extending May’s 3.3% drop, marking the 33rd straight month of decline and missing market expectations of a 3.2% fall.
On a monthly basis, PPI fell 0.4%, unchanged from May, as seasonal declines in raw material prices, lower energy costs due to increased green electricity supply, and downward pressure in export-heavy industries weighed on prices.
