China producer prices slump in June; CPI rises

(Sharecast News) - China's consumer prices rose for the first time in five months in June while producer prices plunged 3.6% year on year, the largest fall in nearly two years, according to official data published on Wednesday.

The consumer price index (CPI) rose 0.1% compared with June 2024, the National Bureau of Statistics said. Economists had forecast a flat reading compared to the same period a year earlier. On a monthly basis, the CPI fell 0.1%.

Excluding volatile food and energy prices, core CPI rose 0.7% year-on-year, the highest reading in 14 months.

Producer prices fell more than the 3.2% forecast by analysts as companies engaged in a domestic price war to clear inventory against the threat of massive US tariffs on Chinese exports.

Reporting by Frank Prenesti for Sharecast.com