China’s CPI fell -0.1% MoM and rose +0.5% YoY in July 2026, reflecting modest annual inflation as food prices remained in deflation while services and core inflation stayed firmer.

• Headline CPI increased +0.5% YoY in July, with urban prices up +0.5% and rural prices up +0.4%, while the January–July average rose +0.9% YoY.

• Food prices fell -1.5% YoY while non-food prices rose +0.9% YoY, showing that food deflation continued to offset broader price increases elsewhere in the basket.

• Consumer goods prices increased just +0.2% YoY, while services prices rose +0.7% YoY. Core CPI excluding food and energy increased +0.9% YoY, indicating firmer underlying inflation than the headline measure.

• Within food, livestock meat prices declined -6.0% YoY, led by pork at -13.3%, while dairy fell -1.5% and fresh fruit -1.1%. Egg prices rose +14.4%, providing a notable offset to broader food weakness.

• Among non-food categories, other goods and services rose +5.8% YoY, healthcare +2.9%, clothing +1.4%, and education, culture and entertainment +1.3%, while housing declined -0.3%.

• On a MoM basis, CPI fell -0.1%, with food prices broadly flat, non-food prices down -0.1%, and consumer goods prices declining -0.6%. Services prices increased +0.4%, showing divergence between goods and services inflation.

• Monthly food movements were mixed, with meat prices rising +1.9% and pork +4.1%, while fresh vegetables increased +1.3%. Fresh fruit prices fell -3.8% and egg prices declined -1.7%, leaving the broader food category little changed.

• Outside food, education, culture and entertainment prices rose +1.0% MoM and healthcare +0.8%, while transportation and communication prices fell -2.2%, driven in part by a -9.8% decline in transportation energy prices.