China's consumer inflation cooled to 1.0% year-on-year in June, undershooting the 1.2% forecast and pulling back from May's 1.2% reading. On a monthly basis, the consumer price index fell 0.3%, marking a second consecutive decline, with pork prices down 15.9% from a year earlier offsetting a 16.0% jump in egg costs.
Factory-gate prices told a different story. The producer price index rose 4.1% year-on-year, the steepest gain since July 2022 and an acceleration from May's 3.9%, extending a four-month upward streak. However, the monthly PPI dipped 0.3%, suggesting some cooling momentum at the producer level even as annual comparisons remain elevated.