China Inflation Slows More Than Expected in June

Bloomberg

Thursday, July 9, 2026 8:20 | 1 minute read

China's consumer price inflation slowed more than expected, after a decline in commodity costs amid easing tensions over Iran last month.

The consumer price index fell to 1% in June from a year earlier, compared with a 1.2% increase the previous month, according to data released by the National Bureau of Statistics on Thursday. The median estimate of economists in a Bloomberg survey was 1.1%.

Producer price inflation accelerated slightly to 4.1% from a year earlier, in line with expectations. The core consumer price index, which excludes volatile food and energy prices, fell to 1% in June, rising at the slowest pace since January.

Price Decline Tests China's Recovery Path

China likely emerged from an economy-wide deflation in the past quarter after a three-year period, a shift largely driven by a boom in artificial intelligence investment and an oil shock from the Middle East conflict.

But despite rising global prices for oil, chips, and metals, optimism about a broader inflation rebound remains uncertain, as factories struggle to fully pass on higher costs to consumers due to weak consumer spending, squeezing their profitability.

Tue, 07 2026

A return of price pressures in the world's largest industrial country could risk inflationary spillovers around the world.

China's export prices are already rising at the fastest pace since early 2023, a reversal after years of near-continuous deflation.

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