China's June CPI Rises 1% Year-on-Year, Market Unfazed by Slowing Inflation

China's three major A-share indices rose on June 9 (Thursday). Data released by China's National Bureau of Statistics on the same day showed that the consumer price index (CPI) in June increased by 1% year-on-year. With easing tensions in Iran and falling commodity costs, the CPI's rise was smaller than expected.

The Shanghai Composite Index closed at 4,036.59 points, up 1.65%. The Shenzhen Component Index closed at 15,398.73 points, up 3.07%. The ChiNext Index closed at 4,018.17 points, up 4.49%.

China's June CPI rose 1% year-on-year, slower than the previous month's 1.2% increase and below economists' forecast of 1.1%.

Breakdown: urban areas rose 1.0%, rural areas up 0.8%; food prices fell 1.6%, non-food prices rose 1.5%; consumer goods prices rose 1.1%, service prices rose 0.8%.

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

Meanwhile, June's Producer Price Index (PPI) rose 4.1% year-on-year, in line with market expectations. However, PPI 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 June's CPI declined 0.3% from the previous month due to seasonal factors and fluctuations in international market prices. Core CPI, excluding food and energy, rose 1% year-on-year, the smallest increase since January this year.