FX.co ★ China CPI Beats Forecasts

In July 2025, China's consumer prices remained stable compared to the same period a year earlier, defying market predictions of a 0.1% reduction. This follows a marginal 0.1% increase in June. Non-food prices saw an upward trend, rising by 0.3% from 0.1% in June, buoyed by notable increases in several sectors: housing rose by 0.1%, clothing by 1.7% from 1.6%, healthcare by 0.5% from 0.4%, and education by 0.9%, slightly down from 1.0%. Meanwhile, transportation costs decreased at a slower rate, falling by 3.1% compared to the previous month's drop of 3.7%. In contrast, food prices experienced a sharper decline, falling by 1.6% from the 0.3% decrease in June, marking the sixth consecutive month of food price reductions. On a month-to-month basis, the Consumer Price Index (CPI) rose by 0.4%, exceeding predictions of 0.3% and reversing the 0.1% decline observed the previous month. This represents the most significant monthly inflation increase since January.