---
title: Deflation remains the name of the game in china
description: "China’s producer prices plunged 3.6% in June from a year earlier, marking its largest decline in nearly two years, as a deepening price war rippled through the economy that’s already grappling with tepid consumer demand.\n\nThe drop in producer prices, however, came worse than the expected 3.2% in a Reuters poll and marked its biggest fall since July 2023, according to LSEG data. The PPI has been mired in a multi-year deflationary streak since September 2022.\n\nThe consumer price index edged 0.1% higher in June from a year ago, according to data from the National Bureau of Statistics Wednesday, returning to growth after four consecutive months of declines. Economists had forecast a flat reading compared to the same period a year earlier, according to a Reuters poll.\n\nCore CPI, stripping out food and energy prices, rose 0.7% from a year ago, the biggest increase in 14 months, according to NBS.\n\nChina June\nAnnual CPI +0.1% [Est. 0.0% Prev. -0.1%]\nMonthly CPI -0.1% [Est. 0.0% Prev. -0.2%]\nAnnual PPI -3.6% [Est. -3.2% Prev. -3.3%]\nMonthly PPI -0.4% [Prev. -0.4%]\n\nSource: CNBC"
---

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# [Deflation remains the name of the game in china](https://blog.syzgroup.com/syz-the-moment/deflation-remains-the-name-of-the-game-in-china)

 Written by [Charles-Henry Monchau, CFA, CMT, CAIA](https://blog.syzgroup.com/syz-the-moment/author/charles-henry-monchau) | Jul 9, 2025, 5:58:04 AM

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