China's Inflation Slows Down to 0.5% in July, PPI Jumps 3.5%

China's inflation rate slowed down in July, according to data released by the National Bureau of Statistics (NBS). The country's consumer price index (CPI) increased by 0.5% year-on-year, down from a 1.0% rise in June. This is slightly lower than market expectations.

The Producer Price Index (PPI) also saw an increase of 3.5% month-on-month, but this was below expectations as well.

Fed Vice Chair Michelle Bowman stated that the Federal Reserve's policy is 'well positioned' for returning inflation to its target rate of 2%, which has been above target for around five years.