China consumer price growth slows in June, producer inflation hits near 4-year high
10 reported
According to a single-source report from CNBC, China’s consumer prices grew slower than expected in June, while wholesale inflation accelerated. Consumer prices rose 1% in June from a year ago, missing economists’ estimates of 1.1% growth in a Reuters poll and slowing from 1.2% in May. Core CPI, excluding volatile food and energy prices, also rose 1% in June, edging down from 1.1% in May. Food prices declined 1.6% from a year earlier, easing from a fall of 1.7% in May. The producer price index jumped 4.1% from a year earlier, in line with economists’ forecast and outpacing May’s 3.9%, marking the strongest growth since July 2022, according to LSEG data. On a month-on-month basis, PPI declined 0.3%, official data showed. The report notes that elevated energy costs continued to sap domestic demand, and experts cited the low-base effect and the Middle East conflict as factors behind wholesale price increases.
What’s reported
Consumer prices rose 1% in June from a year ago, missing the 1.1% estimate in a Reuters poll and slowing from 1.2% in May.
Core CPI (excluding food and energy) rose 1% in June from a year earlier, down from 1.1% in May.
Food prices declined 1.6% from a year earlier in June, easing from a 1.7% fall in May.
Producer price index jumped 4.1% from a year earlier in June, in line with forecasts and up from 3.9% in May, the strongest growth since July 2022.
On a month-on-month basis, PPI declined 0.3% in June.
Producer prices recorded their worst decline in almost two years in June last year, falling 3.6% from the prior year.
Producer prices returned to growth in March, helped by the Middle East conflict and demand for AI computing power.
China’s manufacturing activity expanded faster than expected in June, driven by external demand including AI-related tech.
The International Monetary Fund on Wednesday forecast China’s economy to grow 4.6% in 2026, up from a previous projection of 4.4%, while trimming global growth to 3%.
China has set a growth target of 4.5%-5% for this year.
Key figures
Tianchen Xu, senior economist at Economist Intelligence Unit
Neo Wang, China strategist at Evercore ISI
Gabriel Wildau, managing director at Teneo
National Bureau of Statistics (China)
International Monetary Fund
Politburo of the Communist Party (24-member body)
Sources: CNBC
