July 9, 2025 04:00 AM GMT China Economics | Asia Pacific PPI Deflation Deepens Key Takeaways Stable core CPI, less drag from food and energy: Core CPI edged up 0.1ppt to 0.7%Y from a low base, while its MoM growth held steady at 1.1% SAAR (on par with April and May), thanks to consumer subsidies (CPI factor in undiscounted prices). Meanwhile, food prices came in strong at 12%M SAAR amid unfavorable weather (per NBS), and oil CPI rebounded 5%M SAAR (vs. sharp drop in previous months). PPI - weak final demand ...

Stable Core Prices Mask Underlying Pressure Key Takeaways Core CPI improved modestly: YoY ticked up by 0.1pp to 0.6%Y, while MoM improved to 1.2% SAAR, extending a modest recovery since the Sep-2024 policy pivot. Resilience in core goods - household appliances, entertainment units (e.g., TVs) - largely stems from the consumer goods trade-in program (NBS confirmed that CPI uses pre-discount prices), while the renewed auto price war may not have been incorporated in this month's reading (as these prices are c ...