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Core Insights - The consumer price index (CPI) in August remained stable month-on-month but decreased by 0.4% year-on-year, with the core CPI (excluding food and energy) rising by 0.9%, marking the fourth consecutive month of growth [1][3] Group 1: CPI Analysis - The year-on-year decline in CPI is attributed to a high comparison base from the previous year and lower-than-seasonal food price increases in August [1][2] - The year-on-year drop in food prices, particularly for pork, fresh vegetables, and eggs, has intensified, contributing significantly to the overall CPI decline [2][3] - The core CPI's growth indicates a stable consumer market, supported by ongoing policies aimed at boosting domestic demand and consumption [3] Group 2: Food Price Dynamics - In August, food prices increased by 0.5% month-on-month but were below seasonal expectations, with significant year-on-year declines in pork (16.1%), fresh vegetables (15.2%), and eggs (14.2%) [2][3] - The overall food price index saw a year-on-year decrease of 4.3%, with the downward pressure on CPI increasing compared to the previous month [2] Group 3: Future Outlook - Analysts predict that CPI may remain weak until the end of the year, influenced by low base effects and policies aimed at supporting consumer prices [4] - The stability in food prices and the potential for a recovery in CPI readings are expected as the impact of "anti-involution" policies on consumer goods prices becomes more pronounced [4]