MNI BRIEF: China's CPI Remains Flat In July
China’s Consumer Price Index rose 0.0% y/y in July, edging down from June's 0.1% growth, beating market expectations for a 0.1% fall, mainly due to lower food prices amid the higher comparison base for the same period last year, according to data from the National Bureau of Statistics released Saturday.
On a monthly basis, CPI rose 0.4%, reversing June’s 0.1% fall, as the summer travel peak lifted service prices by 0.6% to drive the headline figure by about 0.26 percentage points. Core CPI, which excludes food and energy, rose 0.8% y/y, expanding for the third consecutive month from June's 0.7% rise, hitting the highest level since March 2024.
| Key Drivers | Month-on-month Change | Year-on-year Change | ||
| July | June | July | June | |
| Tourism | 9.1% | -0.8% | 0.5% | 0.8% |
| Fuel | 3.5% | 0.3% | -9.0% | -10.8% |
| Vegetables | 1.3% | 0.7% | -7.6% | -0.4% |
| Fruits | -3.4% | -3.3% | 2.8% | 6.1% |
China’s Producer Price Index fell 3.6% y/y in July, the same as June's 3.6% drop, marking the 34th straight month of decline and missing market expectations of a 3.3% fall.
On a monthly basis, PPI fell 0.2%, narrowing for the first time since March from June's 0.4% fall, as an ongoing crackdown on excessive competition has led to a narrowing of price declines in coal, steel and photovoltaic industries.
