China Producer Price Inflation Eases to Three-Month Low in July

China's producer price inflation eased to its weakest in three months in July, falling below expectations. The country's National Bureau of Statistics reported a 3.5% year-over-year increase in the producer price index (PPI), down from 4.1% in June. This was lower than the expected 3.8% rise predicted by economists.

The core consumer price index, which excludes food and energy prices, rose 0.9% on a yearly basis, while food prices fell 1.5%. The consumer price index (CPI) edged down 0.1% from the previous month, compared to an expected 0.2% gain.

ANZ's senior China strategist, Zhaopeng Xing, attributed the slower inflation to lower oil prices and weakening demand. 'Lower oil prices, combined with weakening demand, caused both (consumer and producer price inflation) in July to come in below expectations,' he said.