中国 - 7 月生产者价格指数（PPI）通缩仍严重-China_ PPI deflation remained deep in July

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Chinese economy, specifically analyzing the Consumer Price Index (CPI) and Producer Price Index (PPI) trends for July 2023. Core Insights 1. CPI Trends: - China's headline CPI decreased to 0.0% year-over-year (yoy) in July from +0.1% yoy in June, primarily due to deepening food deflation [1][3] - Month-on-month, the CPI fell to +0.4% (annualized, seasonally adjusted) in July compared to +1.8% in June [3] 2. Food Inflation: - Year-over-year food inflation dropped to -1.6% in July from -0.3% in June, driven by significant declines in fresh vegetable prices [4] - Pork prices fell by 9.5% yoy in July, while fresh vegetable prices decreased by 7.6% yoy [4] 3. Non-Food Inflation: - Non-food CPI inflation increased to +0.3% yoy in July from +0.1% in June, with household item prices rising by 1.2% yoy [5][7] - Fuel costs saw a decline of 9.0% yoy in July [5] 4. PPI Trends: - Headline PPI remained unchanged at -3.6% yoy in July, with ongoing deflationary pressures primarily from upstream sectors [9] - Month-over-month PPI inflation rose to -1.8% (annualized, seasonally adjusted) in July from -2.9% in June [9] 5. Sector Contributions to PPI: - The deflation in PPI was attributed to price declines in coal mining, petroleum, ferrous metals, and chemicals, with downstream sectors also contributing negatively [9] Additional Important Insights - The report suggests that the current "anti-involution" policies in China may not lead to a rapid PPI reflation without broad-based demand stimulus [1] - The NBS indicated that falling export prices due to US tariffs and seasonal declines in raw materials contributed to the deep PPI deflation [9] - Core CPI inflation, excluding food and energy, edged up to +0.8% yoy in July, indicating some resilience in non-food sectors [8] This summary encapsulates the critical data and insights from the conference call regarding the current state of the Chinese economy, particularly focusing on inflation metrics and their implications for future economic policies and investment considerations.