China's July Prices Show Mixed Signals Amid Deflation Concerns

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Source: Reuters
China's July Prices Show Mixed Signals Amid Deflation Concerns
Photo: Reuters
TL;DR Summary

China's July factory-gate prices fell more than expected, with PPI down 3.6% year-on-year and CPI unchanged, highlighting ongoing deflation concerns due to sluggish domestic demand, trade uncertainties, and structural economic challenges. Despite some signs of easing deflationary pressures, analysts remain cautious about the sustainability of recovery without demand-side stimulus and reforms.

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