Inflation Eases! China's June CPI Rises 1% Year-on-Year

China's National Bureau of Statistics announced on Thursday the June Consumer Price Index (CPI) rose 1.0% year-on-year, lower than the previous month's 1.2% increase and below economists' forecast of 1.1%. The slowdown was attributed to easing tensions in Iran and declining commodity costs.

In June, urban CPI rose 1.0% and rural CPI increased 0.8%. Food prices fell 1.6% year-on-year, while non-food prices rose 1.5%. Consumer goods prices increased 1.1%, and service prices rose 0.8%.

On a month-on-month basis, June CPI declined 0.3%. Urban areas saw a 0.4% drop and rural areas a 0.3% drop. Food prices fell 0.4%, non-food prices dropped 0.3%, consumer goods prices declined 0.6%, and service prices remained flat.

Meanwhile, the Producer Price Index (PPI) rose 4.1% year-on-year, meeting market expectations, but fell 0.3% month-on-month—the first decline since July 2025.

Dong Lijuan, chief statistician of the Urban Division at the National Bureau of Statistics, stated that seasonal factors and fluctuations in international market prices led to the 0.3% month-on-month decline in CPI. Core CPI, excluding food and energy, rose 1.0% year-on-year, the smallest increase since January this year.