AI Data Insight
Latest data shows that China's non-food CPI for June (previous month = 100) reported at 99.7, equivalent to a month-on-month decline of 0.3%, widening from the previous value of 99.9. The overall CPI's year-on-year growth of 1.0% was also lower than market consensus, reflecting the pullback in prices of industrial consumer goods such as transport fuel and slowing momentum in the service sector's recovery. With deflationary pressures lingering, market expectations for further monetary easing by the People's Bank of China (PBOC) are rising.