China’s Inflation Drops 0.3% in July, First Decline in Over Two Years

China’s inflation data for July came in slightly better than expected, according to the announcement from the National Bureau of Statistics on Wednesday.

The consumer price index for July fell by 0.3% when compared to the same period of last year, but was up by 0.2% from June.

The year-on-year reading was slightly better than a 0.4% drop expected by Reuters poll. This marked the first year-on-year decline since early 2021.

A drop in consumer price was due to a 26% YoY decrease in pork price and a staple food in China. Meanwhile, tourism prices increased by 13.1% from last year.

Core CPI, which excludes the volatile food and energy prices, increased by 0.8% from the same period last year, marking the highest level since January.

Meanwhile, the producer price index dropped by 4.4% in July from last year, but was better than a 5.4% decline in June.