China Inflation Rate Slightly Below Forecasts

2026-07-09 01:35 By Chusnul Chotimah 1 min. read

China's annual inflation eased to 1.0% in June 2026 from 1.2% in both April and May, slightly below market expectations of 1.1%, marking the softest increase in three months.

Non-food inflation slowed (1.5% vs 1.9% in May) due to a moderation in transport costs (4.1% vs 5.4%), as the government cut domestic retail gasoline and diesel prices in June amid lower energy prices following an easing of the Middle East conflict.

Prices also continued to rise for clothing (1.4% vs 1.4%), healthcare (2.3% vs 2.1%), and education (1.4% vs 1.3%).

Meanwhile, housing costs declined at a faster pace (-0.3% vs -0.2%).

On the food side, prices fell for the third consecutive month (-1.6% vs -1.7%), largely due to persistently weak pork prices and continued declines in fresh fruit prices.

Core inflation, excluding food and energy, increased 1.0% yoy, following a 1.1% rise in May.

On a monthly basis, consumer prices fell 0.3% after edging down 0.1% in May, compared with market forecasts of a 0.2% decline.



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China Inflation Rate Slightly Below Forecasts
China's annual inflation eased to 1.0% in June 2026 from 1.2% in both April and May, slightly below market expectations of 1.1%, marking the softest increase in three months. Non-food inflation slowed (1.5% vs 1.9% in May) due to a moderation in transport costs (4.1% vs 5.4%), as the government cut domestic retail gasoline and diesel prices in June amid lower energy prices following an easing of the Middle East conflict. Prices also continued to rise for clothing (1.4% vs 1.4%), healthcare (2.3% vs 2.1%), and education (1.4% vs 1.3%). Meanwhile, housing costs declined at a faster pace (-0.3% vs -0.2%). On the food side, prices fell for the third consecutive month (-1.6% vs -1.7%), largely due to persistently weak pork prices and continued declines in fresh fruit prices. Core inflation, excluding food and energy, increased 1.0% yoy, following a 1.1% rise in May. On a monthly basis, consumer prices fell 0.3% after edging down 0.1% in May, compared with market forecasts of a 0.2% decline.
2026-07-09
China Inflation Stable in May
China’s annual inflation held steady at 1.2% in May 2026, unchanged from the previous month but slightly below market expectations of 1.3%. Non-food inflation edged higher (1.9% vs 1.8% in April), lifted by an acceleration in transport costs (5.4% vs. 4.6%) amid higher energy prices and supply-chain disruptions linked to the ongoing Middle East conflict. Prices also continued to rise for clothing (1.4% vs. 1.5%), healthcare (2.1% vs. 2.2%), and education (1.3% vs. 1.3%). Meanwhile, housing costs remained subdued (-0.2% vs. -0.2%). On the food side, prices fell for the second straight month (-1.7% vs -1.6%), marking the sharpest drop since October, largely due to persistently weak pork prices and continued declines in fresh fruit costs. Core inflation, excluding food and energy, rose 1.1% yoy, after April's 1.2% gain. On a monthly basis, consumer prices edged down 0.1%, reversing a 0.3% increase in April. However, the decline was milder than forecasts of a 0.2% drop.
2026-06-10
China Inflation Rate Above Estimates
China’s annual inflation accelerated to 1.2% in April 2026 from 1.0% in the previous month, exceeding market expectations of 0.8%. Non-food inflation climbed (1.8% vs 1.2% in March), with transport costs picking up significantly (4.6% vs 0.9%), amid higher energy prices and supply chain disruptions linked to the prolonged Middle East conflict. Also, prices continued to rise for clothing (1.5% vs 1.6%), healthcare (2.2% vs 1.9%), and education (1.3% vs 1.1%). In contrast, housing costs continued to decline (-0.2% vs -0.2%). On the food side, prices fell 1.6%, reversing a 0.3% increase in March and marking the first drop since January, reflecting persistently weak pork prices and declines in costs of fresh vegetables and fresh fruits. Core inflation, excluding food and energy, rose 1.2% yoy, after March's 1.1% gain. On a monthly basis, the CPI increased 0.3%, swinging from a 0.7% fall previously and defying consensus for a 0.1% decline.
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