MNI DATA BRIEF: Lower Pork, Produce Prices Slow China's June CPI; PPI Eases

China's June consumer price index slowed to 1.1% y/y from 1.3% in May, though less than forecast 1.3%. The deceleration was mainly attributed to falling food prices led by declining pork prices, according to the National Bureau of Statistics.

Inflation eased 0.4% m/m as the rising supply depressed pork, fruit, and vegetable prices, compared to May's m/m decline of 0.2%. Core CPI, excluding food and energy prices, was up 0.9% y/y in June, same as last month.

Producer price index measuring factory gate prices rose 8.8% y/y, compared with May's near 13-year high of 9.0% gain, in line with the forecast 8.8%. PPI rose 0.3% m/m, decelerating from 1.6% reported last month, as policies to ensure supply and stabilize prices had curbed the rapid price increase of steel and non-ferrous metals.