Interpretation from the National Bureau of Statistics: The CPI continued to rise moderately in July, and the year-on-year increase in PPI declined somewhat
The Zhitong Finance App learned that on August 9, data from the National Bureau of Statistics showed that Dong Lijuan, chief statistician of the City Department of the National Bureau of Statistics, interpreted the CPI and PPI data for July 2026. In July, due to international import factors, the consumer price index (CPI) fell 0.1% month-on-month and rose 0.5% year-on-year. The core CPI after deducting food and energy prices rose 0.3% month-on-month and 0.9% year-on-year. The overall CPI remained moderately elevated. Demand from some domestic industries increased, but due to factors such as import and seasonality, the Industrial Producer Ex-Factory Price Index (PPI) fell 0.7% month-on-month and rose 3.5% year-on-year, down 0.6 percentage points from the previous month.
The original text is as follows:
CPI continued to rise moderately in July 2026, and PPI's year-on-year increase declined somewhat
——Dong Lijuan, chief statistician of the City Department of the National Bureau of Statistics, interprets the CPI and PPI data for July 2026
In July, due to international import factors, the consumer price index (CPI) fell 0.1% month-on-month and rose 0.5% year-on-year. The core CPI after deducting food and energy prices rose 0.3% month-on-month and 0.9% year-on-year. The overall CPI remained moderately elevated. Demand from some domestic industries increased, but due to factors such as import and seasonality, the Industrial Producer Ex-Factory Price Index (PPI) fell 0.7% month-on-month and rose 3.5% year-on-year, down 0.6 percentage points from the previous month.
1. The month-on-month decline in CPI narrowed, and the year-on-year rise moderately
On a month-on-month basis, the national CPI fell 0.1%, and the decline was 0.2 percentage points narrower than the previous month. Price fluctuations in the international market affected the 10.7% drop in domestic gasoline prices, an increase of 5.8 percentage points over the previous month, and affected the CPI decline by about 0.35 percentage points month-on-month. Food prices remained the same as last month, 0.6 percentage points below seasonal levels. Among food products, the price of fresh vegetables rose 1.3%, and the price of eggs fell by 2.1%, all significantly below the seasonal level; seasonal fruits were sold in large quantities, and fresh fruit prices fell 3.8%, affecting the CPI decline by about 0.07 percentage points month-on-month; the effects of comprehensive pig production capacity regulation policies were evident, compounded by factors such as frequent extreme weather such as high temperatures and heavy rainfall in some regions driving up transportation costs. The price of pork changed from a 0.8% drop last month to a 4.1% increase, affecting the CPI increase by about 0.07 percentage points month-on-month.
Artificial intelligence has driven the iterative upgrading of consumer electronics products. Demand for related products has increased and prices have risen. The prices of tablets, computers, and mobile phones have risen 11.3%, 5.5%, and 1.0% respectively, which together affected the CPI increase by about 0.03 percent month-on-month. Service prices changed from being flat last month to an increase of 0.4%, affecting the CPI increase by about 0.21 percent month-on-month. Among services, demand for summer travel increased, and travel agency fees, hotel accommodation, air tickets, and transportation rental prices rose 7.2%, 6.5%, 4.2%, and 3.6% respectively, which collectively affected the CPI increase by about 0.10 percentage points month-on-month; policy price adjustments continued to advance, and medical service prices rose 1.1%, affecting the CPI increase by about 0.07 percent month-on-month.
On a year-on-year basis, the national CPI rose 0.5%, maintaining a moderate increase. The year-on-year increase in CPI fell 0.5 percentage points from the previous month, mainly due to the decline in gasoline price increases. Gasoline prices rose 1.0%, down 16.0 percentage points from the previous month. The impact on the increase in CPI was reduced by about 0.45 percentage points from the previous month, driving the increase in energy prices back to 0.6%. Prices of industrial consumer goods excluding energy rose 1.5%, down 0.2 percentage points from the previous month, affecting the CPI increase by about 0.37 percent year on year.
Among them, the prices of gold jewelry, personal care products, and household appliances rose 24.6%, 1.7%, and 0.2%, respectively, and the increases all declined, affecting the CPI increase by about 0.13 percentage points; the prices of computers, tablets and mobile phones rose 17.4%, 17.2%, and 8.5%, respectively. The increases all increased, which together affected the CPI increase by about 0.14 percent year on year. Service prices rose 0.7%, down 0.1 percentage points from the previous month, affecting the year-on-year increase in CPI by about 0.36 percent.
Among services, the price of medical services rose 4.3%, an increase of 0.9 percentage points over the previous month, affecting the CPI increase by about 0.28 percent year on year; the prices of domestic service, catering, and education services rose by 1.3%, 1.0%, and 0.6%, respectively, and the increase was generally stable. Food prices fell 1.5%, and the decline was 0.1 percentage points narrower than the previous month, affecting the year-on-year decline in CPI by about 0.25 percentage points.
Among food products, pork prices fell 13.3%, 2.6 percentage points narrower than the previous month, affecting the CPI decline of about 0.25 percentage points year on year; prices of fresh vegetables, fresh fruit, food, cooking oil, and milk fell between 0.3% and 1.5%; egg prices rose 17.8%, down 2.2 percentage points from the previous month; and lamb, beef and poultry prices rose between 1.6% and 6.2%.
2. PPI declined month-on-month, and the year-on-year increase declined somewhat
On a month-on-month basis, the national PPI fell 0.7%, an increase of 0.4 percentage points over the previous month. The main characteristics of this month's PPI month-on-month operation: First, import factors affect the decline in prices in related domestic industries. The manufacturing prices of petroleum extraction, refined petroleum products, and organic chemical raw materials fell by 11.8%, 8.4%, and 4.2%, respectively; prices in the non-ferrous metal ore mining and processing industry fell by 2.1% and 1.7%, respectively. The five industries together affected the PPI decline by about 0.65 percentage points from month to month.
Second, seasonal factors affect price declines in some industries. There were many high temperatures, rain and typhoons in July, and construction progress of construction projects slowed down. Prices in the ferrous metal smelting and rolling processing industry and non-metallic mineral products fell 0.8% and 0.5% respectively; hydropower and wind power increased, and prices fell 10.3% and 3.9%, respectively. The four industries combined affected the PPI decline by about 0.11 percentage points from month to month.
Third, industrial transformation and upgrading and consumption improvement and capacity expansion have led to increased demand and price increases in some industries. New kinetic energy is growing, and fields such as artificial intelligence, high-end equipment, and new materials are booming. The manufacturing prices of intelligent unmanned aerial vehicles, new carbon materials, ships and related devices have risen by 2.5%, 0.4%, and 0.3%, respectively. Quality consumption is growing rapidly, and manufacturing prices for smart home consumer devices and skincare cosmetics have risen by 3.4% and 0.7%, respectively.
On a year-on-year basis, the national PPI rose by 3.5%, down 0.6 percentage points from the previous month. By industry, among the main industries where prices have risen, the oil and gas extraction industry, petroleum coal and other fuel processing industries, and the chemical raw materials and chemical products manufacturing industry rose 3.2%, 8.2%, and 9.1% respectively. The non-ferrous metal ore mining and processing industry, the non-ferrous metal smelting and rolling processing industry rose 22.6% and 20.2% respectively, and the ferrous metal smelting and rolling processing industry rose 2.7%, the average increase from the previous month. The six industries combined affected the PPI increase by about 2.55 percent year on year; the coal mining and washing industry rose 27.1%, and the electrical machinery and materials manufacturing industry rose 27.1%, and the electrical machinery and materials manufacturing industry rose 27.1% At 5.7%, the computer communications and other electronic equipment manufacturing industry rose 4.4%. The increase was increased over the previous month. The total impact of the three industries on PPI increased by about 1.53 percent year on year.
The impact of the above nine industries on the increase in PPI decreased by 0.56 percentage points compared to the previous month. The five industries most affected by the price drop were electricity and heat production and supply, automobile manufacturing, non-metallic mineral products, pharmaceutical manufacturing, alcohol and beverage, and refined tea manufacturing. The decline was between 2.3% and 5.7%. In total, PPI fell by about 0.76 percentage points year on year, down 0.05 percentage points from the previous month.