In June, China saw the lowest increase in consumer prices since March – only 0.2% year-on-year, as indicated in the report of the State Statistical Office. Analysts had forecast an increase of 0.4%. Inflation continued to rise for the fifth month in a row, but slowed down compared to May, when it was 0.3%. Last month, non-food products rose in price by 0.8%, including clothing, which became more expensive by 1.5%. Medical and educational services also rose in price by 1.5% and 1.7%, respectively. The cost of housing increased by 0.2%, while transport services became cheaper by 0.3%. Food prices decreased by 2.1%, which was the result of the twelfth consecutive month of decline. Core Inflation (Core CPI), excluding food and energy prices, rose 0.6% year-on-year, the same as in May. At the same time, producer prices (PPI) in China decreased by 0.8% in June compared to the same month of the previous year, which is the lowest value since January 2023. This indicator has been declining for 21 consecutive months. In June, the PPI index fell by 0.2% compared to the previous month. For the period from January to June, compared to the same period in 2023, the PPI index decreased by 2.1%.
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