As in May, June consumer price inflation was 1.5 % y-o-y. Core inflation, which excludes food and energy prices, also remained steady. This year’s official inflation target is 3 %, so price trends at the moment do not restrict macro-level policy.
Producer prices have fallen each month since April, but 12-month producer price inflation in June was still up 5.5 %. Producer prices track energy and commodity prices, so a slowdown in the on-year rise in producer prices is expected.
Price trends in China, percentage change, y-o-y