China Inflation Eases as Oil Shock from Iran War Starts to Fade

China's inflation has begun to slow down as the oil shock from the Iran war starts to ease. The country's producer price index (PPI) rose by 3.5% in July compared to the same period last year, which is a slower pace than expected and lower than the previous month's gain of 4.1%. This marks the first slowdown since China's PPI turned positive in March, fueled by higher oil prices.

The consumer price index (CPI) also showed signs of deceleration, increasing by 0.5% in July year-over-year, down from a 1.0% rise in June and slightly lower than expected. On a monthly basis, prices fell 0.1%, following a 0.3% decline from the previous month.

The data suggests that cost pressures from the oil shock are starting to fade, which could be a positive sign for the Chinese economy.