In June, China experienced its fifth consecutive month of consumer price growth, albeit below expectations, while producer prices continued to decline, indicating persistent deflationary pressures. Despite government efforts to stimulate consumption post-Covid, concerns linger over a sluggish economic recovery marked by a prolonged housing slump and job insecurity. The Consumer Price Index (CPI) rose by 0.2% YoY, slower than in previous months, driven by a notable drop in food prices despite supply disruptions. Meanwhile, the Producer Price Index (PPI) fell by 0.8 percent, indicating ongoing challenges in the manufacturing sector due to excess capacity.