In June, China's consumer prices rose slightly by 0.2% year-on-year, marking the fifth consecutive month near zero, highlighting ongoing deflationary challenges hindering economic recovery. Meanwhile, factory-gate prices remained in deflation, declining 0.8% year-on-year. Economic disparities persist with manufacturing showing resilience amid weak consumer spending due to a real estate downturn and job market struggles. The risk of prolonged deflation poses concerns, potentially dampening consumption and business activity unless domestic demand rebounds significantly. Policymakers may consider monetary easing measures to stimulate growth, pending global economic developments and domestic conditions.
