On August 9, China's National Bureau of Statistics released data showing that the national Consumer Price Index (CPI) fell by 0.1% month-on-month in July, a narrowing of 0.2 percentage points from the previous month, while the year-on-year figure rose by 0.5%. Excluding the volatile food and energy prices, the core CPI rose by 0.3% month-on-month and 0.9% year-on-year. Meanwhile, impacted by imported and seasonal factors, the Producer Price Index (PPI) dropped by 0.7% month-on-month, but saw a year-on-year increase of 3.5%, a 0.6 percentage point slowdown from the previous month. Industry insiders suggest that as technological innovation and industrial upgrading progress steadily, the internal growth drivers for China's high-quality economic development are set to strengthen further.

Dong Lijuan, Chief Statistician at the National Bureau of Statistics' Urban Department, analyzed that the 0.5 percentage point decline in July's year-on-year CPI growth was primarily driven by a slowdown in the rise of gasoline prices. Gasoline prices increased by 1.0%, but the growth rate dropped by 16.0 percentage points from the previous month, reducing its upward pull on the CPI by about 0.45 percentage points. This led to a moderation in energy price growth to 0.6%. The iterative upgrade of consumer electronics, with artificial intelligence (AI) at its core, directly drove a modest recovery in prices for smart terminal products like computers and tablets, becoming a highlight in the micro-structure of the economy.

Xie Cun, a spokesperson for the Ministry of Industry and Information Technology and Director of the Information and Communication Administration Bureau, stated that the range of 5G-based smart terminals is continuously expanding. Products such as AI-powered smartphones and computers, intelligent robots, AI glasses, and AI toys are emerging as new hotspots for information consumption. Data shows that in July, demand for related products increased, driving prices up. Tablet computers, computers, and mobile phones saw month-on-month price increases of 11.3%, 5.5%, and 1.0% respectively, collectively contributing about 0.03 percentage points to the month-on-month CPI rise. Year-on-year, these prices rose by 17.2%, 17.4%, and 8.5% respectively, with all growth rates expanding, together contributing about 0.14 percentage points to the year-on-year CPI increase.

Regarding PPI performance, July saw prices in industries related to 'new quality productive forces' rise against the broader trend. Data indicates that industrial transformation, upgrading, and the expansion of high-quality consumption boosted demand in certain sectors. For instance, prices for intelligent unmanned aerial vehicle manufacturing rose by 2.5% month-on-month, carbon-based new material prices increased by 0.4%, and ship and related device manufacturing prices grew by 0.3%. Additionally, prices for smart home consumer devices and skincare cosmetics manufacturing rose by 3.4% and 0.7% month-on-month, respectively. Professor Jiang Tao from the School of Economics and Economic Management at the Hubei Provincial Party School believes that the acceleration of industries towards high-end, intelligent, and green transformation clearly indicates that the quality and efficiency of China's economic development are continuously improving.

Industry insiders note that despite short-term disruptions to certain prices from international imports and seasonal factors, the robust performance of the core CPI reflects a solid foundation for domestic demand. Furthermore, the boom in consumer electronics driven by cutting-edge technology and the firm pricing in sectors linked to new growth drivers profoundly reveal that technological innovation and industrial upgrading are becoming the core engines of China's endogenous economic growth. As the effects of policies promoting consumption, expanding domestic demand, and strengthening technology continue to be released, the internal growth drivers for China's high-quality economic development are expected to further strengthen.