The price data released by the National Bureau of Statistics for June shows:

The Producer Price Index (PPI) rose 4.1% year-on-year, reaching its highest level in nearly four years.
The Consumer Price Index (CPI) rose 1.0% year-on-year, below market expectations.
This also reflects a clear divergence in the domestic economy.
On the export side, driven by global AI demand, high-end manufacturing performed well, but domestic consumption is weak, investment is sluggish, and the downturn in real estate continues to drag down domestic demand.
Overcapacity and insufficient domestic demand mean many manufacturers face higher costs but find it difficult to pass them on to customers, squeezing profit margins.
Reuters noted that the PPI increase this time is partly due to a low base in the same period last year, and is also related to the previous rise in energy prices.
Price increases in industries such as coal, electrical machinery, electronic products, and ferrous metals have pushed up factory-gate prices for industrial goods.
Analysts believe that the export boom is temporarily supporting some growth, so policymakers still have time to observe and do not need to rush into introducing stronger stimulus measures.