AI Data Insight
China's latest June CPI index fell to 104.04, with the YoY growth rate pulling back to 1.0%, not only lower than the market expectation of 1.1%, but also cooling from the previous value of 1.2%. Dragged down by both continued weakness in food prices and a retreat in international energy costs, it reflects that terminal consumer demand remains weak. The continuously widening scissors gap between PPI and CPI may further squeeze corporate profit margins.