China Inflation Rate Hits 6-Month Low

2026-08-09 01:39 By Farida Husna 1 min. read

China’s annual inflation eased to 0.5% in July 2026 from 1.0% in the prior month, falling short of market forecasts of 0.8%.

It was the lowest print since January, as food prices continued to decline while non-food inflation slowed further.

Food cost fell for the fourth straight month (-1.5% vs -1.6% in June), weighed by a further drop in pork prices amid abundant supply and weak consumption.

Meanwhile, non-food prices rose at a softer rate (0.9% vs 1.5%), with transport costs up more modestly (0.4% vs 4.1%) after a government fuel-price cut and easing global energy costs as Middle East supply disruptions subsided.

Education costs also eased (1.3% vs 1.4%) while housing cost fell further (-0.3% vs -0.3%).

In contrast, clothing inflation was stable (at 1.4%), and healthcare prices accelerated (2.9% vs 2.3%).

Core inflation, excluding food and energy, rose 0.9% yoy, after June's 1.0%.

Monthly, consumer prices fell 0.1%, defying consensus for a 0.2% gain and following a 0.3% fall in June.



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China Inflation Rate Hits 6-Month Low
China’s annual inflation eased to 0.5% in July 2026 from 1.0% in the prior month, falling short of market forecasts of 0.8%. It was the lowest print since January, as food prices continued to decline while non-food inflation slowed further. Food cost fell for the fourth straight month (-1.5% vs -1.6% in June), weighed by a further drop in pork prices amid abundant supply and weak consumption. Meanwhile, non-food prices rose at a softer rate (0.9% vs 1.5%), with transport costs up more modestly (0.4% vs 4.1%) after a government fuel-price cut and easing global energy costs as Middle East supply disruptions subsided. Education costs also eased (1.3% vs 1.4%) while housing cost fell further (-0.3% vs -0.3%). In contrast, clothing inflation was stable (at 1.4%), and healthcare prices accelerated (2.9% vs 2.3%). Core inflation, excluding food and energy, rose 0.9% yoy, after June's 1.0%. Monthly, consumer prices fell 0.1%, defying consensus for a 0.2% gain and following a 0.3% fall in June.
2026-08-09
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.
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