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πŸ‡¨πŸ‡³ China's inflation cooldown shows how much of its deflation exit was really about Iran

πŸ‡¨πŸ‡³ China's inflation cooldown shows how much of its deflation exit was really about Iran

July consumer prices in China rose just 0.5% year-on-year, down from 1.0% in June, as the oil price spike from the Iran conflict unwound, raising doubts about how much of Beijing's deflation exit was genuine reform versus an energy blip.

Line chart of Eurozone PPI Y/Y% (black) and China PPI Y/Y% (red) from 1998 to early 2026.
China's July CPI and PPI both missed forecasts as the economy remains trapped in a low-inflation regime that has historically helped contain European price pressures. Source

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