The Investor
10 Aug 2026, 09:06
China Inflation Cools in July as CPI Falls and PPI Growth Slows
China's inflation data weakened in July, with consumer prices falling on a monthly basis and both CPI and producer-price growth coming in below expectations.
The Consumer Price Index fell 0.1% month-over-month in July, missing expectations for a 0.2% increase. However, the decline moderated from the 0.3% drop recorded in June.
On an annual basis, CPI increased 0.5%, below the 0.8% consensus estimate and slowing from 1.0% previously.
Producer prices also showed softer inflation. The Producer Price Index rose 3.5% year-over-year, below expectations for a 3.9% increase and down from 4.1% in the previous month.
The figures point to easing price pressures across the Chinese economy. The combination of weaker consumer inflation and slowing producer-price growth may reinforce concerns about the strength of domestic demand, while also giving policymakers greater flexibility to support economic activity if growth loses momentum.
China's inflation data weakened in July, with consumer prices falling on a monthly basis and both CPI and producer-price growth coming in below expectations.
The Consumer Price Index fell 0.1% month-over-month in July, missing expectations for a 0.2% increase. However, the decline moderated from the 0.3% drop recorded in June.
On an annual basis, CPI increased 0.5%, below the 0.8% consensus estimate and slowing from 1.0% previously.
Producer prices also showed softer inflation. The Producer Price Index rose 3.5% year-over-year, below expectations for a 3.9% increase and down from 4.1% in the previous month.
The figures point to easing price pressures across the Chinese economy. The combination of weaker consumer inflation and slowing producer-price growth may reinforce concerns about the strength of domestic demand, while also giving policymakers greater flexibility to support economic activity if growth loses momentum.
