China’s latest economic data, released by the National Bureau of Statistics on Wednesday, revealed that consumer price inflation in June rose by 0.2% year-on-year, which was below market expectations. Analysts had anticipated a 0.4% increase, according to a Reuters poll. Meanwhile, the producer price index, reflecting factory-gate prices, declined by 0.8% year-on-year, aligning with forecasts.
The core consumer price index (CPI), excluding volatile food and energy prices, registered a 0.6% year-on-year increase in June, slightly slower than the 0.7% rise recorded for the first half of the year.
Key price movements included an 18.1% surge in pork prices year-on-year, while beef prices saw a decline of 13.4%. Additionally, tourism-related prices rose by 3.7% compared to June last year, though this was 0.8% lower than in May.
Zhiwei Zhang, President and Chief Economist at Pinpoint Asset Management, noted concerns about deflation risks in China, citing persistently weak domestic demand. He highlighted China’s reliance on exports to bolster growth in the first half of the year.
Looking ahead, China is set to release its trade data for June on Friday. The data underscores China’s divergent inflationary trends compared to economies like the United States, where inflation has remained relatively elevated amid stronger domestic demand.
