Annual consumer price growth in China slowed more than expected, driven by falling food prices and softer producer inflation.
China’s annual consumer inflation eased to 0.5% in July, down from 1.0% in June and below forecasts of 0.8%. The reading marks the lowest level since January, reflecting a 1.5% year-on-year decline in food prices.
Producer price inflation also moderated, rising 3.5% compared with June’s 3.8%. The slowdown in consumer prices contrasts with expectations for steady demand recovery amid broader economic stabilization efforts.
Markets had anticipated a milder deceleration, with consensus estimates centered on 0.8% consumer inflation for the month.