CPI Analysis - August CPI decreased by 0.4% year-on-year, lower than the expected -0.2%, marking a six-month low[1] - Food prices contributed to the CPI decline, with a year-on-year drop of 4.3%, impacting CPI by 0.8 percentage points[2] - Core CPI rose by 0.9% year-on-year, the highest in 18 months, indicating a continuous increase for six months[2] PPI Analysis - August PPI decreased by 2.9% year-on-year, an improvement from the previous -3.6%, aligning with expectations[3] - PPI ended an eight-month decline, with a month-on-month stabilization, reflecting seasonal averages[3] - The "anti-involution" effect led to price increases in coal, black metals, and glass industries, contributing to the PPI improvement[3] Future Outlook - September CPI is likely to remain negative, with an annual average around 0% due to ongoing pressures from energy and pork prices[5] - PPI is expected to continue narrowing its decline in September, but weak export prices and insufficient consumer demand will constrain recovery[5] - The overall economic environment suggests a cautious approach, with policies expected to support but not significantly boost growth in the short term[6]