Chine Taux d'inflation

China’s consumer prices were flat from a year earlier in July 2025, surpassing market expectations for a 0.1% drop and following a 0.1% gain in the previous month. Non-food prices picked up (0.3% vs 0.1% in June), supported by Beijing’s consumer goods subsidies, with further increases in housing (0.1% vs 0.1%), clothing (1.7% vs 1.6%), healthcare (0.5% vs 0.4%), and education (0.9% vs 1.0%). At the same time, transport cost fell at a slower pace (-3.1% vs -3.7%). On the food side, prices dropped at a steeper rate (-1.6% vs -0.3%), marking the strongest fall in five months. Core inflation, which excludes volatile food and fuel prices, rose 0.8% yoy, the highest reading in 17 months and after a 0.7% gain in June. On a monthly basis, the CPI rose 0.4% in July, slightly above forecasts of 0.3% and reversing a 0.1% decline in June. This marked the highest monthly inflation since January, partly due to recent extreme weather, including heavy downpours.