{"id":6395,"date":"2025-07-09T11:14:52","date_gmt":"2025-07-09T11:14:52","guid":{"rendered":"https:\/\/otetmarkets.com\/blog\/?p=6395"},"modified":"2025-07-09T14:20:03","modified_gmt":"2025-07-09T14:20:03","slug":"china-inflation-june-2025","status":"publish","type":"post","link":"https:\/\/otetmarkets.com\/blog\/news\/china-inflation-june-2025\/","title":{"rendered":"China Inflation Turns Positive in June 2025: Is Deflation Over?"},"content":{"rendered":"\n<p>After five months in negative territory, <strong>China inflation<\/strong> (CPI) recorded a slight increase of 0.1% in June 2025, signaling a fragile but important shift in China inflation in June 2025. The country\u2019s battle with deflation may be easing\u2014but not over. This CPI rebound is tied to food and service price stabilization, while factory-gate prices (PPI) continued their steep decline, falling by 3.6%.<\/p>\n\n\n\n<p>This change is the first positive CPI figure since January, reflecting a mild uptick in domestic demand. However, it also underscores ongoing structural weaknesses like sluggish consumer confidence and real estate woes during the China inflation in June 2025 period.<\/p>\n\n\n\n<figure class=\"wp-block-video\">\n  <a href=\"https:\/\/otetmarkets.com\/prblog\" target=\"_blank\">\n    <video height=\"500\" style=\"aspect-ratio: 1312 \/ 500;\" width=\"1312\" autoplay=\"\" loop=\"\" muted=\"\" playsinline=\"\">\n      <source src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/04\/Otet-Banner-en-2.mp4\" type=\"video\/mp4\">\n      Your browser does not support the video tag.\n    <\/video>\n  <\/a>\n<\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-takeaways\"><br><strong>\ud83d\udccc Key Takeaways<\/strong><\/h2>\n\n\n\n<p>\u2705 China inflation rose 0.1% YoY in June, ending a five-month deflation streak<br>\ud83d\udcca Core inflation climbed to 0.7%, a 14-month high<br>\ud83d\udcc9 Producer prices (PPI) dropped 3.6% YoY, worsening from May<br>\ud83d\udcac Consumer spending remains weak despite summer discount campaigns<br>\ud83c\udfe6 Policy easing expected in Q4 if growth doesn&#8217;t pick up<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inflation-snapshot\"><br><strong>\ud83d\udcca Inflation Snapshot<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Indicator<\/th><th>June 2025<\/th><th>May 2025<\/th><\/tr><\/thead><tbody><tr><td>CPI (YoY)<\/td><td>+0.1%<\/td><td>\u22120.1%<\/td><\/tr><tr><td>Core CPI (YoY)<\/td><td>+0.7%<\/td><td>+0.6%<\/td><\/tr><tr><td>PPI (YoY)<\/td><td>\u22123.6%<\/td><td>\u22123.3%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-driving-the-shift\"><br><strong>What\u2019s Driving the Shift?<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"482\" src=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-13-1024x482.webp\" alt=\"China Inflation in June 2025\" class=\"wp-image-6398\" srcset=\"https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-13-1024x482.webp 1024w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-13-300x141.webp 300w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-13-768x361.webp 768w, https:\/\/otetmarkets.com\/blog\/wp-content\/uploads\/2025\/07\/slider-photo-13.webp 1312w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-food-prices-and-services-lead-the-way\"><strong>Food Prices and Services Lead the Way<\/strong><\/h3>\n\n\n\n<p>The slight CPI rise in China in June 2025 is driven by stabilization in food prices and a modest pickup in services, particularly tourism and dining, as the summer season begins. However, prices for durable goods and energy remain weak.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><strong>Read More: <a href=\"https:\/\/otetmarkets.com\/blog\/news\/chinas-manufacturing-activity\/\" target=\"_blank\" rel=\"noreferrer noopener\">China\u2019s Manufacturing Activity Rebounds in June<\/a><\/strong><\/p>\n<\/blockquote>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-factory-prices-still-in-deep-decline\"><br><strong>Factory Prices Still in Deep Decline<\/strong><\/h3>\n\n\n\n<p>Although <strong>China inflation<\/strong> is no longer negative at the consumer level, the producer side is still under pressure. The 3.6% drop in PPI, the worst in nearly two years, points to weaker factory margins and tepid global demand.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-it-means-for-policy-and-growth\"><br><strong>What It Means for Policy and Growth<\/strong><\/h2>\n\n\n\n<p>The People\u2019s Bank of China (PBOC) is closely watching the China inflation in June 2025 data. With inflation still well below the government\u2019s 3% target, more stimulus measures or a rate cut could arrive later in the year. Economists forecast mild loosening in Q4 if deflation risks persist.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-to-watch-in-the-coming-months\"><br><strong>\ud83d\udd2e What to Watch in the Coming Months<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>July CPI and PPI reports: Will the upward CPI trend continue?<\/li>\n\n\n\n<li>Retail sales and housing data: Signals of sustained recovery or weakness?<\/li>\n\n\n\n<li>Policy updates from the PBOC and fiscal authorities<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\"><strong>Final Thoughts <\/strong><\/h2>\n\n\n\n<p>Even a 0.1% rise in <strong>China inflation<\/strong> is a critical marker for investors, consumers, and policymakers. It suggests deflation might be easing but with major risks still looming.<\/p>\n\n\n\n<p><strong>What do you think? Will inflation in China stabilize or slide again?<br>\ud83d\udc47 Drop your thoughts in the comments, share this post, and check out our other updates on China&#8217;s economy.<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/tradingeconomics.com\/china\/inflation-cpi\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After five months in negative territory, China inflation (CPI) recorded a slight increase of 0.1% in June 2025, signaling a fragile but important shift in China inflation in June 2025. The country\u2019s battle with deflation may be easing\u2014but not over. This CPI rebound is tied to food and service price stabilization, while factory-gate prices (PPI) [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6397,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,2],"tags":[37],"class_list":["post-6395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-economy-news","category-news","tag-financialnews"],"_links":{"self":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6395","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/comments?post=6395"}],"version-history":[{"count":3,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6395\/revisions"}],"predecessor-version":[{"id":6402,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/posts\/6395\/revisions\/6402"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media\/6397"}],"wp:attachment":[{"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/media?parent=6395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/categories?post=6395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/otetmarkets.com\/blog\/wp-json\/wp\/v2\/tags?post=6395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}