China's consumer price index (CPI), a key measure of inflation, showed stability in July with a year-on-year reading of 0% change, according to data released by the National Bureau of Statistics (NBS) on Saturday. The figure reflects a delicate balance in domestic demand and global economic pressures as policymakers navigate post-pandemic recovery.
Month-over-month, the CPI rose 0.4%, rebounding from June's 0.1% decline. Analysts highlight the sustained growth in core CPI—which excludes volatile food and energy prices—as a positive signal. The metric climbed 0.8% year-on-year, marking its third consecutive monthly increase and suggesting resilient consumer spending in sectors like travel and services.
Meanwhile, the producer price index (PPI) fell 4.4% annually, extending its 21-month streak of declines. The NBS attributed the contraction to seasonal factors and lower commodity prices, though noted improvements in high-tech manufacturing demand.
Market observers are closely watching these trends as China's economic indicators carry significant weight for Asian trade partners and global supply chains. The stable CPI may provide room for targeted stimulus measures, while PPI pressures underscore ongoing challenges for export-reliant industries.
