China July data – China’s consumer price inflation flat y/y, but higher than expected m/m | investingLive

China’s consumer prices were flat y/y in July, as government efforts to rein in excessive competition offered some relief from deflationary pressures. Analysts caution that the path out of deflation will be long and may require stronger stimulus measures.

Consumer Price Index (YoY) (July) 0.0%,

• no change from a year earlier, beating forecasts for a small decline
• a second month without negative readings
• expected -0.1%, prior +0.1%

Consumer Price Index (MoM) (July) +0.4%

• expected +0.3%, prior -0.1%

Producer Price Index (YoY) (July) -3.6%

• factory-gate prices continued to fall
• producer price index down for the 34th consecutive month of producer deflation
• expected -3.3%, prior -3.6%

Authorities have launched a campaign to curb price wars (Chinese policy shift to “Anti-involution”) that have been squeezing company profits and wages, but analysts warn that deeper problems remain. Household expectations for future prices have weakened, and the GDP deflator — a broad gauge of economy-wide prices — has now fallen for nine straight quarters, the longest decline in decades.