FX.co ★ China Food Inflation Drops for 3rd Month

China’s food prices fell by 1.6% year-on-year in June 2026, easing slightly from the 1.7% drop recorded in May, which had been the sharpest decline in seven months. This marked the third straight month of falling food prices, underscoring plentiful supply and subdued consumer demand. Prices continued to slide for fresh fruit (-0.7% vs. -1.0% in April), edible oils (-1.1% vs. -1.2%), and dairy products (-1.7% vs. -1.2%). Pork prices—an important component of China’s food basket—also declined, though at a marginally slower pace (-15.9% vs. -16.1%), reflecting ongoing abundant supply and weak consumption.