China’s CPI Up 1.6%; PPI Declines 5.4% In July

China’s consumer price index (CPI) rose to 1.6% year-on-year in July, from 1.4% in June, driven by rising food prices.

Producer price index (PPI) declined further to 5.4% year-on-year in July, compared with a decline of 4.8% in June, as commodity prices fell during the month.

"While headline CPI will likely head modestly higher in the second half, the non-food CPI will remain subdued on the back of sluggish domestic demand," says a research report by ANZ.