China: Consumer prices inch up year-on-year in July
Consumer prices rose 0.3% from the previous month in July, up from June’s 0.1% decrease and contrasting the downward trend seen since March. The increase was driven by higher prices for seven of the eight categories, with the biggest jump in prices registered in the education, culture and recreation subsector. Prices for clothing, meanwhile, fell over the previous month.
Inflation edged up to 2.1% in July from 1.9% in June, slightly above market expectations. In contrast, annual average inflation was stable at June’s over one-year high of 1.9%.
Producer price inflation decelerated marginally to 4.6% in July from 4.7% in June, after three consecutive monthly increases, overshooting market analysts’ expectations of 4.5%. Inflation was driven by higher prices in the means of production subcategory, which includes mining and quarrying, raw materials, and processing, with higher prices across the board.