FX.co ★ China Consumer Prices Rise for First Time in 5 Months

In June 2025, China's consumer prices exhibited a year-on-year increase of 0.1%, reversing a trend of a 0.1% decline observed over the previous three months and surpassing market forecasts, which anticipated no change. This marks the first annual rise in consumer inflation since January. The non-food price index experienced a slight uptick of 0.1%, after having remained stable in the preceding two months. This growth was bolstered by increases in housing (0.1%, consistent with May's 0.1%), clothing (up to 1.6% from 1.5%), healthcare (rising to 0.4% from 0.3%), and education (increasing to 1.0% from 0.9%). Meanwhile, transportation costs eased their decline, falling at a slower rate of -3.7%, compared to -4.3% previously. In the food sector, prices continued to decline but at a reduced rate of -0.3%, compared to -0.4% in prior months, marking the fifth consecutive month of decrease. However, on a monthly basis, the Consumer Price Index (CPI) declined by 0.1%, following a 0.2% decrease in April, marking the fourth monthly decline observed this year.