2023-08-09 01:13:57 ET
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China's consumer prices dropped by 0.3% y/y in July, the first decrease since February 2021, compared to a flat reading in June and market estimates of a 0.4% fall.
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China's statistics agency said a fall in CPI will only be temporary, and it is projected to pick up gradually as the impact of a high base last year will fade. The reported inflation data for July pointed to a modest improvement from June.
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Core consumer prices, which exclude prices of food and energy, went up 0.8% yoy, the most since January, after a 0.4% gain in June.
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On a monthly basis, consumer prices unexpectedly rose by 0.2%, beating forecasts of a 0.1% decrease and marking the first rise in 6 months.
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China's producer prices fell 4.4% y,y in July 2023, worse than market forecasts of a 4.1% decline, after a 5.4% drop in the prior month, which was the steepest decrease since December 2015.
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It was the tenth consecutive month of producer deflation but the smallest deflation in three months amid weakening demand and moderating commodity prices.
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On a monthly basis, producer prices were down 0.2%, the fourth straight month of decline, following a 0.8% drop in June.
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Food prices in China declined by 1.7% y/y in July 2023, reversing from a 2.3% rise in the prior month while pointing to the first drop since March 2022.
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ETFs: ( FXI ), ( KWEB ), ( CQQQ ), ( MCHI ), ( ASHR ), ( YINN ), ( TDF ), ( CHIQ ), ( GXC ), ( EWH ), ( KBA ), ( YANG ), ( CXSE ), ( CAF ), ( CWEB ), ( PGJ ), ( KURE ), ( CHIX ), ( CYB ).
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Now read: China trade surplus narrows sharply in July as exports, imports both posted double-digit decline
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China's CPI fall for first time in over two years to 0.3%; PPI drop more than expected