CX Briefing: Consumer Inflation Rebounds

A rundown of the news making headlines in and around China:

CPI decline breaks: A rebound in industrial consumer goods prices drove a slight uptick in China’s consumer price index (CPI) in June. The 0.1% year-on-year rise ended four consecutive months of decline, marking a 0.2-percentage-point increase from May, according to official data released Wednesday. Growth in the core CPI, which excludes volatile food and energy prices, accelerated by 0.1 percentage points to 0.7%, hitting a level not seen since April 2024. The producer price index continued to slide, falling 3.6% year-on-year, its sharpest decline in nearly two years. The larger-than-expected drop was fueled partly by cheaper energy costs and the global trade slowdown, which increased downward pressure on prices in export-heavy industries.