City skyline in China

China Inflation July 2022

China: Inflation hits over two-year high in July

Consumer prices increased 0.50% in July over the previous month, following June’s flat result. July’s figure marked the highest reading since February. The figure was largely due to rising prices for food.

Consumer inflation came in at 2.7% in July, which was up from June’s 2.5%. July’s reading marked the highest inflation rate since April 2020, but was still very low compared to other Asian economies—a sign of subdued domestic demand. Annual average inflation rose to 1.6% in July (June: 1.5%). Finally, producer price inflation fell to 4.2% in July, from the previous month’s 6.1%.

Consumer price inflation is expected to stay muted for the remainder of the year. Meanwhile, producer price inflation should continue to trend down on a base effect—given increasingly high producer price inflation readings as last year progressed—and the recent fall in global commodity prices. The recent severe heatwave is an upside risk due to the potential impact on food prices.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest