China July 2024 CPI +0.5% y/y (expected +0.3%) and PPI -0.8% y/y (expected -0.9%)

Inflation, both CPI and PPI, data from China for July 2024

The m/m PPI is -0.2%

This data comes in higher than expected for CPI, and also (not as negative as expected) for PPI. The pick up in consumer inflation moves the danger of deflation in China little further away. It also suggest some improvement in domestic deamdn. Weak domestic demand has been a weight on growth, so this sliver of good news will be welcomed.

The producer price index remains in basket case territory of course.

This article was written by Eamonn Sheridan at www.forexlive.com.