CXSE - Softer-Than-Expected June Inflation Continues To Bolster The Case For Easing In China
2024-07-10 03:40:00 ET
Summary
- China’s CPI inflation slowed to a 3-month low of 0.2% YoY in June on softer-than-expected non-pork food prices but remained in positive territory for the fifth consecutive month.
- Weak consumer confidence continues to drive consumption in the direction of seeking better value-for-money purchases, and competition in the EV sector continues to drive prices down, suppressing overall inflation.
- Moving forward, we expect inflation to trend gradually higher in the second half of the year.
By Lynn Song
China's inflation remained barely in positive territory in June
Inflationary pressures remained subdued
China's June CPI inflation edged down to 0.2% YoY, down slightly from 0.3% YoY, and coming in weaker than forecasts for a slight uptick to 0.4% YoY. Inflation has been very flat in the last four months, fluctuating between 0.1-0.3% YoY. In month-on-month terms, June's CPI inflation dropped to -0.2%, and inflation has now seen two consecutive months of decline....
Softer-Than-Expected June Inflation Continues To Bolster The Case For Easing In China