June CPI year-over-year increase slowed to 1%; PPI year-over-year growth widened, but the month-over-month rate turned downward.

[Caixin] Mainly dragged by declines in international oil and gold prices, related consumer goods prices affected China’s June inflation data: the year-on-year growth in the Consumer Price Index (CPI) narrowed, while the month-on-month drop in the CPI widened; meanwhile, the year-on-year increase in the Producer Price Index (PPI) for industrial producers hit the highest level since August 2022, though it has already turned to a decline on a month-on-month basis.

Data released by the National Bureau of Statistics on July 9 showed that in June, CPI rose 1% year on year, with the increase narrowing by 0.2 percentage points from the previous month. The CPI has declined for two consecutive months on a month-on-month basis, with the month-on-month decline widening by 0.2 percentage points to 0.3%. Core CPI, excluding food and energy prices, slowed by 0.1 percentage points to 1.0% year on year, indicating that the situation of stronger supply and weaker demand is still ongoing. PPI rose 4.1% year on year in the month, 0.2 percentage points higher than the previous value, and fell 0.3% month on month, 0.8 percentage points lower than the previous value.