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China's consumer prices rise for first time in five months

CHINA, JUL 9 – China's consumer price index rose 0.1% in June, surpassing expectations amid ongoing deflation due to weak demand and industrial oversupply, officials said.

  • China's consumer price index rose 0.1 percent year-on-year in June 2025, marking the first increase after four months of decline.
  • This rise followed persistent deflation in producer prices, which fell 3.6 percent in June, the fastest drop in nearly two years amid trade tensions.
  • The rebound in consumer prices mainly reflects higher industrial consumer goods prices as government policies aimed at boosting domestic demand continue.
  • Economists warn it is too early to declare deflation over, noting sluggish domestic spending and weakening property sector momentum despite Beijing's 5 percent growth target.
  • The data suggest early signs of economic recovery but also highlight ongoing challenges from tariffs and cautious consumer behavior affecting growth prospects.
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China's snaps 4-month consumer decline but factory price deflation deepens

Consumer prices in China rose slightly in June, official data showed on Wednesday, snapping a four-month decline even as factory gate prices were bruised by a fierce trade war with Washington.

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U.S. News broke the news in New York, United States on Tuesday, July 8, 2025.
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