China
2025.07.09 14:28 GMT+8

China's CPI edges up 0.1% in June, PPI drops 3.6%

Updated 2025.07.09 14:28 GMT+8
CGTN

Customers shop for vegetables at a supermarket in Handan, Hebei Province, July 9, 2025./VCG


China's consumer prices rose for the first time in five months in June, official data showed on Tuesday, as government measures to boost domestic demand and spur consumption showed early signs of traction.

The consumer price index (CPI) rose 0.1 percent year-on-year, reversing a decline in May, the National Bureau of Statistics (NBS) said. On a monthly basis, the CPI fell 0.1 percent, with the pace of decline narrowing slightly.

Excluding volatile food and energy prices, the core CPI increased 0.7 percent year-on-year, marking the highest reading in 14 months.

"The shift in CPI from decline to growth has been mainly driven by a rebound in the prices of industrial consumer goods," said Dong Lijuan, chief statistician with the NBS's urban division. The year-on-year decline in industrial consumer goods prices narrowed to 0.5 percent from 1.0 percent in May, reducing the downward drag on overall CPI by approximately 0.18 percentage points, she added.

Meanwhile, the producer price index (PPI), which reflects prices at the factory gate, dropped 3.6 percent year-on-year, widening from a 3.3 percent fall in May. On a month-on-month basis, the PPI fell 0.4 percent, with the decline unchanged from the previous month.

While the broader PPI continued to show deflationary pressure, Dong noted that prices in some sectors has stabilized or begun to rebound.

Prices for gasoline and electric vehicles rose 0.5 percent and 0.3 percent month-on-month, respectively, with the year-on-year declines narrowing. High-tech sectors, including integrated circuit packaging and testing, wearable smart devices, microwave communication equipment, aerospace equipment, and servers, also recorded year-on-year price increases.

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