May CPI rose 1.2% year-over-year, below the 1.3% estimate, as deflationary pressures persist in key sectors.
China’s consumer price index increased 1.2% year-over-year in May, falling short of the 1.3% consensus forecast. Month-over-month, prices declined 0.1%, slightly better than the expected 0.2% drop, signaling persistent deflationary risks.
Analysts had anticipated a modest rebound after April’s weaker print, but sluggish domestic demand and soft commodity prices weighed on the reading. The data contrasts with rising inflation expectations in the U.S., where bond traders brace for potential Fed policy shifts.
The People’s Bank of China set the USD/CNY reference rate at 6.8130, stronger than the 6.7749 estimate, reflecting ongoing currency stabilization efforts amid global volatility.