China's CPI Rises 1.0% In June As Food Prices Stay Weak

China's consumer price index (CPI) rose 1.0% year-on-year in June 2026, with urban prices increasing 1.0% and rural prices rising 0.8%. Food prices fell 1.6%, while non-food prices climbed 1.5%. Consumer goods prices increased 1.1% and service prices edged up 0.8%. For the first half of 2026, average CPI was 1.0% higher than the same period a year earlier.

On a monthly basis, China's CPI declined 0.3% in June, as urban prices fell 0.4% and rural prices slipped 0.3%. Food prices dropped 0.4%, non-food prices decreased 0.3%, consumer goods prices fell 0.6%, while service prices were unchanged from the previous month.

Food Prices Remain The Main Drag On Annual Inflation

Prices for food, tobacco, alcohol, and dining-out services fell 0.8% year-on-year in June, reducing the headline CPI by about 0.24 percentage points.

Among food categories, livestock meat prices dropped 7.3%, subtracting about 0.30 percentage points from CPI, with pork prices plunging 15.9%. Dairy prices declined 1.7%, while fresh fruit prices slipped 0.7%. In contrast, egg prices surged 16.0%, contributing about 0.08 percentage points to overall inflation.

Among the remaining seven major consumption categories, six recorded annual price increases and one posted a decline. Prices for miscellaneous goods and services rose 6.6%, transportation and communication increased 4.1%, and healthcare advanced 2.3%. Clothing as well as education, culture, and recreation each gained 1.4%, while household goods and services rose 1.3%. Housing prices edged down 0.3% from a year earlier.

Monthly CPI Falls As Fresh Food Prices Decline

On a monthly basis, prices for food, tobacco, alcohol, and dining-out services fell 0.3%, lowering CPI by about 0.08 percentage points.

Fresh fruit prices declined 2.0%, reducing CPI by around 0.04 percentage points, while fresh vegetable prices fell 1.0%, subtracting approximately 0.02 percentage points. Livestock meat prices decreased 0.5%, including a 0.8% drop in pork prices, together reducing CPI by about 0.02 percentage points. Egg prices, however, rose 5.8%, adding roughly 0.03 percentage points to the monthly CPI.

Across the other seven major consumption categories, one recorded a monthly increase, two remained unchanged, and four declined. Healthcare prices rose 0.2%, while housing and education, culture, and recreation were unchanged. Miscellaneous goods and services fell 2.7%, transportation and communication declined 1.3%, household goods and services slipped 0.2%, and clothing prices eased 0.1%.