AI Data Insight
In July 2026 (Q3 2026), China's non-food CPI year-on-year growth cooled significantly from 1.5% in the previous month to 0.9%, causing the overall CPI YoY growth to retreat to 0.5%, below the market expectation of 0.8%. With the decline in international crude oil prices and the slowdown in domestic consumption momentum, the price support from the industrial and service sectors has weakened. This indicates that although the Chinese economy continues to push policy stimulus, domestic demand remains weak, and it still faces the challenge of a deflationary shadow in the short term.