China's Inflation Accelerates in July

The annual headline inflation in China inched up to 2.7% in July 2020 from 2.5% in June driven by surging food prices. In July 2020, the food prices soared by 13.2% y/y, marking 13th consecutive month of double-digit growth, with meat and poultry prices up by 61.1% y/y. 

On the other hand, China's core inflation that excludes food and energy dropped to 0.5% in July, the lowest level since 2010, indicating a depressed demand and deflationary pressure on the economy. Producer price index declined by 3.4% y/y in July. 

Further data and analysis on China’s economy is available on the CEIC China Economy in a Snapshot – Q3 2020 report.