China: Inflation inches up in June
Consumer prices fell 0.1% from the previous month in June, continuing the downward trend seen since March. June’s print followed the 0.2% decrease registered in May. The drop was driven by lower prices for food, tobacco and liquors; it was notably impacted by lower fresh fruits and vegetables prices.
Inflation edged up to 1.9% in June from 1.8% in May, in line with market expectations. Similarly, annual average inflation also rose to 1.9% in June (May: 1.8%), an over one-year high.
Producer price inflation accelerated for the third consecutive month and rose to 4.7% in June, from 4.1% in May, overshooting market analysts’ expectations of 4.5%. The jump was mainly due to a base effect and higher commodity prices, especially for oil.