China's economic recovery showed tentative signs of stabilization as consumer prices rose for the first time since January, according to official data released Tuesday. The National Bureau of Statistics reported a 0.1% year-on-year increase in the Consumer Price Index (CPI), marking a reversal from May's 0.2% decline.
Core CPI – excluding volatile food and energy prices – climbed 0.7% annually, reaching its highest level in 14 months. This development suggests government measures to stimulate domestic consumption are gradually taking effect, particularly in industrial consumer goods where price declines moderated significantly.
However, the Producer Price Index (PPI) told a different story, with factory gate prices falling 3.6% year-on-year – the steepest decline since February. NBS statistician Dong Lijuan noted emerging bright spots, including month-on-month price increases in gasoline (0.5%) and electric vehicles (0.3%), along with growth in high-tech sectors like integrated circuit packaging and aerospace equipment.
Analysts suggest the mixed data presents both challenges and opportunities for businesses and investors. While consumer demand shows early recovery signals, manufacturers continue facing pricing pressures that could influence global supply chain decisions.
