Employment Trends - Job gains in health care were offset by job cuts in the federal government [1] - Job losses occurred in mining, quarrying, and oil and gas extraction sectors [1]

Group 1: Coal, Oil, and Natural Gas Production - In July, the production of raw coal decreased, with an output of 380 million tons, a year-on-year decline of 3.8% [2] - The cumulative production of raw coal from January to July reached 2.78 billion tons, showing a year-on-year increase of 3.8% [2] - Raw oil production remained stable, with July output at 18.12 million tons, a year-on-year increase of 1.2% [4] - From January to July, the cumulative raw oil production was 126.6 million tons, reflecting a year-on-year growth of 1.3% [4] - The processing of raw oil accelerated, with July processing volume at 63.06 million tons, a year-on-year increase of 8.9% [5] - Cumulative raw oil processing from January to July was 424.68 million tons, up 2.6% year-on-year [5] - Natural gas production saw an accelerated growth, with July output at 21.6 billion cubic meters, a year-on-year increase of 7.4% [9] - From January to July, the cumulative natural gas production was 152.5 billion cubic meters, reflecting a year-on-year growth of 6.0% [9] Group 2: Electricity Production - Electricity production in July increased, with a total generation of 926.7 billion kilowatt-hours, a year-on-year growth of 3.1% [11] - The cumulative electricity generation from January to July was 5,470.3 billion kilowatt-hours, showing a year-on-year increase of 1.3% [11] - In July, the daily average electricity generation was 29.89 billion kilowatt-hours, with a year-on-year daily average growth of 1.8% after adjusting for the number of days [11] - By type, thermal power generation increased by 4.3% year-on-year, while hydropower saw a decline of 9.8% [11] - Nuclear power generation grew by 8.3%, although the growth rate slowed by 2.0 percentage points compared to June [11] - Wind power generation increased by 5.5%, with an acceleration in growth compared to previous months [11]

Core Viewpoint - California Governor Newsom proposed easing approval permits for local oil extraction in the state [1] Group 1 - The proposal aims to streamline the regulatory process for oil drilling activities [1] - This initiative is part of a broader strategy to enhance local energy production [1] - The decision may impact the state's energy landscape and economic dynamics [1]

Investment Rating - The report maintains a cautious stance on inflation forecasts while awaiting further policy actions [3][19]. Core Insights - The year-on-year Consumer Price Index (CPI) turned positive in June, marking a surprise after four consecutive negative readings, which may indicate potential reflation in China [3][4]. - The Producer Price Index (PPI) deflation deepened unexpectedly, highlighting a divergence in price trends among different sectors, particularly between auto and steel prices [4][19]. - The report emphasizes the importance of supply-side reforms (SSR2.0) and the role of demand in shaping inflation expectations [19]. Summary by Sections CPI Analysis - The CPI reading for June was +0.0% YoY, compared to a prior reading of -0.1% YoY, with a sequential change of -0.1% MoM [3][5]. - Significant price increases were noted in the "other goods and services" category, which includes jewelry, with a +8.1% YoY change [5][8]. - Core inflation rose by +0.7% YoY, with core goods prices increasing by 0.9% YoY [5][19]. PPI Analysis - The PPI reading was -3.6% YoY, contrasting with market expectations of a narrower contraction [4][19]. - The PPI for the auto sector showed stabilization, while ferrous metals and non-metallic minerals reported negative changes, indicating a mixed outlook for SSR2.0 candidates [4][19]. Supply Side Reform Insights - The report suggests that the upcoming Politburo meeting and action plans from relevant ministries will be crucial for future inflation trajectories [19]. - The divergence in price trends between sectors like steel and auto underscores the need for targeted demand-side policies [19].