China’s consumer price index (CPI) showed a moderate easing of deflation in July 2026, with the month‑over‑month reading improving to -0.1% from -0.3% in June. The latest data, updated on 9 August 2026, suggest that price pressures remain weak but are moving gradually toward stabilization.
On a month-over-month basis, July’s figure reflects a smaller decline in prices compared with the previous month, when June’s CPI fell 0.3% versus May. While prices are still contracting, the reduced pace of decline may indicate that some deflationary forces are starting to abate, a development that will be closely watched by investors and policymakers assessing the strength of China’s domestic demand.
The comparison is based on changes between consecutive months: July 2026 versus June 2026 for the current reading, and June 2026 versus May 2026 for the previous one. This sequential improvement in the CPI trajectory could factor into expectations around future monetary or fiscal measures aimed at supporting price stability and growth in the world’s second-largest economy.
