On August 9, the National Bureau of Statistics released the latest CPI data. In July 2026, the national consumer price index rose 0.5% year-on-year. Urban areas saw a 0.5% increase, while rural areas rose 0.4%. Food prices fell 1.5%, while non-food prices increased 0.9%. Consumer goods prices rose 0.2%, and service prices were up 0.7%. For the first seven months of the year, the average national CPI was 0.9% higher than the same period last year. On a month-on-month basis, the national CPI fell 0.1% in July. Urban areas declined 0.1%, and rural areas fell 0.2%. Food prices were unchanged, while non-food prices dropped 0.1%. Consumer goods prices decreased 0.6%, and service prices rose 0.4%. In July 2026, the producer price index for industrial products rose 3.5% year-on-year and fell 0.7% month-on-month. The purchasing price index for industrial producers increased 5.5% year-on-year and dropped 1.0% month-on-month. For the first seven months of the year, the average PPI rose 1.8% year-on-year, and the purchasing price index increased 2.8%.

Pork prices fell 13.3% year-on-year, while egg prices rose 14.4%. Regarding year-on-year changes in various goods and services in July, the food, tobacco, alcohol, and dining-out category fell 0.8% year-on-year, dragging the CPI down by about 0.22 percentage points. Within food, meat prices fell 6.0%, impacting the CPI by about minus 0.25 percentage points, with pork prices down 13.3%. Dairy prices fell 1.5%, impacting the CPI by about minus 0.02 percentage points. Fresh fruit prices dropped 1.1%, impacting the CPI by about minus 0.02 percentage points. Egg prices surged 14.4%, pushing the CPI up by about 0.07 percentage points. Among the other seven major categories, six rose and one fell year-on-year. Other goods and services and healthcare prices increased by 5.8% and 2.9%, respectively. Clothing and education, culture, and entertainment prices rose 1.4% and 1.3%, respectively. Household goods and services and transportation and communication prices increased by 0.8% and 0.4%, respectively. Housing prices fell 0.3%.

In July, the food, tobacco, alcohol, and dining-out category was flat month-on-month. Within food, meat prices rose 1.9%, impacting the CPI by about 0.07 percentage points, with pork prices up 4.1%. Fresh vegetable prices increased 1.3%, impacting the CPI by about 0.02 percentage points. Fresh fruit prices fell 3.8%, dragging the CPI down by about 0.07 percentage points. Egg prices dropped 1.7%, impacting the CPI by about minus 0.01 percentage points. Among the other seven major categories, three rose, two were flat, and two fell month-on-month. Education, culture, and entertainment; healthcare; and household goods and services prices increased by 1.0%, 0.8%, and 0.4%, respectively. Housing and other goods and services prices were flat. Transportation and communication and clothing prices fell by 2.2% and 0.4%, respectively.

Regarding year-on-year changes in producer prices in July, the means of production prices rose 4.8%, contributing about 3.72 percentage points to the overall PPI increase. Within this, mining industry prices rose 16.4%, raw material industry prices increased 6.1%, and processing industry prices rose 3.1%. Living materials prices fell 0.8%, dragging the overall PPI down by about 0.17 percentage points. Within this, food prices fell 2.1%, clothing prices dropped 1.1%, general daily-use goods prices decreased 1.0%, and durable consumer goods prices rose 0.4%. In the industrial producer purchasing price index, non-ferrous metal materials and wire prices surged 19.0%. Fuel and power, and chemical raw material prices both rose 9.3%. Textile raw material prices increased 3.2%, and ferrous metal materials prices rose 1.4%. Building materials and non-metallic materials prices fell 4.1%, and agricultural by-products prices dropped 0.8%.

On a month-on-month basis in July, means of production prices fell 0.9%, dragging the overall PPI down by about 0.70 percentage points. Within this, mining industry prices fell 0.2%, raw material industry prices dropped 2.4%, and processing industry prices decreased 0.1%. Living materials prices fell 0.1%, dragging the overall PPI down by about 0.01 percentage points. Within this, food and durable consumer goods prices were flat, clothing prices fell 0.3%, and general daily-use goods prices dropped 0.2%. In the industrial producer purchasing price index, fuel and power and chemical raw material prices both fell 2.6%. Non-ferrous metal materials and wire prices dropped 1.4%. Ferrous metal materials and textile raw material prices both fell 0.2%. Building materials and non-metallic materials prices dropped 0.1%. Agricultural by-products prices rose 0.5%.

Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics, interpreted the July 2026 CPI and PPI data. In July, influenced by international factors, the CPI fell 0.1% month-on-month and rose 0.5% year-on-year. The core CPI, excluding food and energy, rose 0.3% month-on-month and 0.9% year-on-year, indicating generally moderate inflation. While demand in some domestic industries increased, the PPI fell 0.7% month-on-month and rose 3.5% year-on-year, with the annual growth rate slowing by 0.6 percentage points from the previous month due to international and seasonal factors.

The month-on-month CPI decline narrowed, with a moderate year-on-year increase. On a month-on-month basis, the national CPI fell 0.1%, a decrease that narrowed by 0.2 percentage points from the previous month. Fluctuations in international market prices led to a 10.7% drop in domestic gasoline prices, an acceleration of 5.8 percentage points from the previous month, impacting the month-on-month CPI by about minus 0.35 percentage points. Food prices were flat, 0.6 percentage points below seasonal levels. Fresh vegetable prices rose 1.3%, and egg prices fell 2.1%, both significantly below seasonal norms. Ample supply of seasonal fruits led to a 3.8% drop in fresh fruit prices, impacting the month-on-month CPI by about minus 0.07 percentage points. The effects of comprehensive hog production capacity regulation policies, combined with extreme weather like high temperatures and heavy rains in some regions pushing up transportation costs, caused pork prices to shift from a 0.8% decline in the previous month to a 4.1% increase, impacting the month-on-month CPI by about 0.07 percentage points. Artificial intelligence is driving the upgrade of consumer electronics, increasing demand and prices for related products. Prices for tablet computers, computers, and mobile phones rose by 11.3%, 5.5%, and 1.0%, respectively, collectively impacting the month-on-month CPI by about 0.03 percentage points. Service prices shifted from flat to a 0.4% increase month-on-month, impacting the CPI by about 0.21 percentage points. Increased summer travel demand pushed up prices for travel agency fees, hotel accommodation, airfares, and vehicle rental by 7.2%, 6.5%, 4.2%, and 3.6%, respectively, collectively impacting the month-on-month CPI by about 0.10 percentage points. Ongoing policy-driven price adjustments in some regions raised medical service prices by 1.1%, impacting the month-on-month CPI by about 0.07 percentage points.

Year-on-year, the national CPI rose 0.5%, maintaining a moderate increase. The 0.5 percentage point slowdown in the annual CPI growth rate from the previous month was mainly due to a narrower increase in gasoline prices. Gasoline prices rose 1.0%, a 16.0 percentage point slowdown from the previous month, reducing its upward impact on the CPI by about 0.45 percentage points and pulling the overall energy price growth rate down to 0.6%. Prices of industrial consumer goods excluding energy rose 1.5%, a 0.2 percentage point slowdown from the previous month, contributing about 0.37 percentage points to the annual CPI. Within this, prices for gold jewelry, personal care products, and household appliances rose by 24.6%, 1.7%, and 0.2%, respectively, with slowing growth rates, collectively contributing about 0.13 percentage points to the annual CPI. Prices for computers, tablet computers, and mobile phones rose by 17.4%, 17.2%, and 8.5%, respectively, with expanding growth rates, collectively contributing about 0.14 percentage points. Service prices rose 0.7%, a 0.1 percentage point slowdown from the previous month, contributing about 0.36 percentage points to the annual CPI. Within services, medical service prices rose 4.3%, a 0.9 percentage point acceleration from the previous month, contributing about 0.28 percentage points. Prices for domestic services, dining out, and education services rose by 1.3%, 1.0%, and 0.6%, respectively, with generally stable growth rates. Food prices fell 1.5%, a 0.1 percentage point narrowing in the decline rate from the previous month, dragging the annual CPI down by about 0.25 percentage points. Within food, pork prices fell 13.3%, a 2.6 percentage point narrowing in the decline rate from the previous month, dragging the annual CPI down by about 0.25 percentage points. Fresh vegetable, fresh fruit, grain, edible oil, and dairy prices fell between 0.3% and 1.5%. Egg prices surged 17.8%, a 2.2 percentage point slowdown from the previous month. Lamb, beef, and poultry prices rose between 1.6% and 6.2%.

The PPI fell month-on-month, and the year-on-year increase moderated. On a month-on-month basis, the national PPI fell 0.7%, a 0.4 percentage point acceleration in the decline rate from the previous month. Key characteristics of the month-on-month PPI movement included: First, international factors impacted domestic industry prices. Prices for oil extraction, refined petroleum product manufacturing, and organic chemical raw material manufacturing fell by 11.8%, 8.4%, and 4.2%, respectively. Non-ferrous metal mining and processing prices fell by 2.1% and 1.7%, respectively. These five industries collectively pulled the month-on-month PPI down by about 0.65 percentage points. Second, seasonal factors caused price declines in some industries. High temperatures, rain, and typhoons in July slowed construction progress, leading to a 0.8% and 0.5% drop in ferrous metal smelting and non-metallic mineral products prices, respectively. Increased hydropower and wind power generation pushed down their prices by 10.3% and 3.9%, respectively. These four industries collectively pulled the month-on-month PPI down by about 0.11 percentage points. Third, industrial transformation, upgrading, and quality consumption expansion drove demand and price increases in some sectors. The growth of new drivers, including AI, high-end equipment, and new materials, led to price increases of 2.5% for smart unmanned aerial vehicle manufacturing, 0.4% for carbon new materials, and 0.3% for ships and related equipment. Rapid growth in quality consumption pushed up prices for smart home consumer devices and skincare cosmetics manufacturing by 3.4% and 0.7%, respectively.

Year-on-year, the national PPI rose 3.5%, a 0.6 percentage point slowdown from the previous month. Among the industries with the most significant price increases, oil and gas extraction, petroleum processing, and chemical raw material manufacturing rose by 3.2%, 8.2%, and 9.1%, respectively. Non-ferrous metal mining and processing rose by 22.6% and 20.2%, respectively. Ferrous metal smelting rose by 2.7%. The growth rates for all these six industries moderated compared to the previous month, collectively contributing about 2.55 percentage points to the annual PPI. Coal mining and washing rose by 27.1%, electrical machinery manufacturing rose by 5.7%, and computer, communication, and other electronic equipment manufacturing rose by 4.4%, with growth rates accelerating compared to the previous month. These three industries collectively contributed about 1.53 percentage points. The upward pull from these nine industries on the PPI decreased by 0.56 percentage points from the previous month. The five industries with the greatest downward pull on prices were electricity and heat production, automobile manufacturing, non-metallic mineral products, pharmaceutical manufacturing, and beverage and refined tea manufacturing, with declines between 2.3% and 5.7%. Collectively, they dragged the annual PPI down by about 0.76 percentage points, a decrease of 0.05 percentage points from the previous month.