China's Consumer Inflation Slows More Than Expected in June

Consumer price inflation in China decelerated more than analysts had anticipated, influenced by a decline in raw material costs amid reduced geopolitical tensions surrounding Iran over the past month.

Data released by China's National Bureau of Statistics on Thursday showed the consumer price index (CPI) dropped to 1% year-on-year in June 2026, down from 1.2% in May 2026.

This figure was below the economists' average forecast, which had predicted a 1.1% increase.

Conversely, the producer price index (PPI) recorded a slight rise, increasing to 4.1% year-on-year, aligning with expectations.

The core consumer price index, which excludes food and energy prices due to their volatility, also declined to 1% in June 2026, marking its slowest growth rate since January of the same year.