China’s consumer price index fell 0.1% month on month in July, undershooting the 0.2% market expectation. The reading points to a softer-than-anticipated monthly inflation profile at the start of the second half.
July CPI in Negative Territory
The data leave July’s CPI (MoM) in negative territory, contrasting with forecasts that had pencilled in a modest rise.
Market Implications
Markets will parse the release for implications for near-term price dynamics and the broader demand backdrop.
