China's CPI rose +1.2% YoY in May, up from the recent trend and bringing year-to-date inflation to +1.0% YoY. On a monthly basis, consumer prices slipped -0.1% MoM.

• Inflation remains highly uneven beneath the surface. Food prices fell -1.7% YoY, led by a sharp -16.1% YoY decline in pork prices and a -2.2% YoY drop in fresh fruit prices. Meanwhile, non-food inflation accelerated to +1.9% YoY.
• Transportation & communication prices rose +5.4% YoY, supported by a +21.1% YoY increase in transportation fuel costs. Healthcare prices increased +2.1% YoY, while clothing prices rose +1.4% YoY.
• Core inflation excluding food and energy came in at +1.1% YoY, suggesting underlying price pressures remain relatively stable despite ongoing volatility in food and energy markets.
• On a monthly basis, falling food prices (-0.4% MoM) and transportation costs (-0.3% MoM) offset gains in clothing prices (+0.6% MoM), leaving headline CPI down slightly from April.