China’s annual consumer inflation slowed to 1.0% in June 2026, down from 1.2% in both April and May, hitting its lowest level in three months and missing market expectations of 1.1%. The cooling CPI was primarily driven by food prices, which fell 1.6% year-on-year—marking the third consecutive monthly decline due to weak consumer demand, ample supply, persistently soft pork prices, and falling fre...
China’s annual consumer inflation slowed to 1.0% in June 2026, down from 1.2% in both April and May, hitting its lowest level in three months and missing market expectations of 1.1%. The cooling CPI was primarily driven by food prices, which fell 1.6% year-on-year—marking the third consecutive monthly decline due to weak consumer demand, ample supply, persistently soft pork prices, and falling fresh fruit costs. Core inflation, which excludes volatile food and energy costs, also slowed slightly to 1.0% year-on-year from 1.1% in May. On a month-on-month basis, consumer prices slid 0.3%, a larger contraction than May's 0.1% dip and the expected 0.2% decline. In contrast, factory-gate inflation accelerated, with China’s producer price index (PPI) rising 4.1% year-on-year in June 2026. This matched consensus forecasts and picked up from a 3.9% gain in May, marking the fourth straight monthly increase and the fastest growth rate since July 2022. The surge in PPI was propelled by stronger commodity prices and escalating production costs, as ongoing geopolitical tensions in the Middle East continued to pressure global energy and raw material markets. Following the data release, Chinese equities saw modest gains on Thursday, with the Shanghai Composite rose 0.2% to 3,978, while the Shenzhen Component gained 0.5% to 15,020. The offshore yuan rose to around 6.79 per dollar, snapping a three-session losing streak. ETFs: (NYSEARCA: FXI ), (NYSEARCA: KWEB ), (NYSEARCA: CQQQ ), (NASDAQ: MCHI ), (NYSEARCA: ASHR ), (NYSEARCA: YINN ), (NYSE: TDF ), (NYSEARCA: CHIQ ), (NYSEARCA: GXC ), (NYSEARCA: EWH ), (NYSEARCA: KBA ), (NYSEARCA: YANG ), (NASDAQ: CXSE ), (NYSE: CAF ), (NYSEARCA: CWEB ), (NASDAQ: PGJ ), (NYSEARCA: KURE ). Currency: ( CNY:USD ) More on China markets and economy: Templeton Dragon Fund Inc. Q1 2026 Commentary KWEB: World Class Tech Weighed By The China Discount YINN: I'm No Longer Bearish On Chinese Stocks (Rating Upgrade) Asian stocks mixed as chip selloff weighs; HK ...