hina’s inflation story took an interesting turn this month.
Headline CPI rose to 0.7%, the highest level since early 2024, supported by a rebound in food prices and ongoing growth in non-food categories. This points towards improving household demand and better retail momentum.
But the real issue lies on the production side:
Producer prices fell 2.2% YoY, marking the 38th straight month of deflation. That’s a long stretch — and it signals persistent weakness in China’s manufacturing and export-led sectors.
For traders, this creates a mixed environment:
Consumers are slowly recovering
Industries remain under pressure
Policy support from Beijing may increase
A dynamic setup worth monitoring closely.
#Fed# #ChinaUSTariffDeal# #ChinaEconomy# #FlashNews#
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