China Producer Prices Fall to Three-Month Low

Data has shown that producer price inflation in China declined in July 2026 to its lowest level in three months, recording a year-over-year increase of 3.5% compared to 4.1% in June. This was below the expectations of a 3.8% rise. The decline in oil prices and weak domestic demand have contributed to the easing of inflation, while consumer inflation also slowed, with the core consumer price index falling by 0.9% annually. Despite strong industrial production and exports, domestic demand remains weak, and growth continues to rely on increased government spending on infrastructure projects that have had their budgets approved. Expectations include ongoing fluctuations in inflation throughout the year.

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