China's June CPI Slows to 1% as PPI Accelerates to 4.1%
Updated
Updated · CNBC · Jul 9
China's June CPI Slows to 1% as PPI Accelerates to 4.1%
3 articles · Updated · CNBC · Jul 9
Summary
China's June consumer inflation cooled to 1% from 1.2% in May, undershooting a 1.1% Reuters poll forecast, while core CPI also eased to 1%.
4.1% producer inflation, up from 3.9%, reflected higher energy and commodity costs tied to Middle East disruptions, plus stronger AI-related demand for tech equipment and semiconductors.
June PMI data suggested that price pressure may be easing: the input-cost index fell to a six-month low of 54.2 and the output-price gauge slipped to 48.2, its first contraction this year.
4.6% IMF growth forecast for China, raised from 4.4%, underscores an economy still driven by exports, high-tech manufacturing and infrastructure spending even as weak consumption and housing weigh on households.
Late July's Politburo meeting is now the next key policy marker, with analysts expecting Beijing to hold back major stimulus unless the consumer slowdown outlasts the current conflict.