CCTV news: Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, interpreted the CPI and PPI data for July 2026.

In July, affected by international imported factors, the consumer price index (CPI) fell by 0.1% month-on-month and increased by 0.5% year-on-year. The core CPI excluding food and energy prices increased by 0.3% month-on-month and increased by 0.9% year-on-year. The overall CPI maintained a moderate increase.Demand in some domestic industries increased, but due to factors such as importation and seasonality, the industrial producer price index (PPI) fell by 0.7% month-on-month and increased by 3.5% year-on-year, with the increase falling by 0.6 percentage points from the previous month.

1. The month-on-month decrease in CPI narrowed, and the year-on-year increase was moderate

From a month-on-month perspective, the national CPI fell by 0.1%, and the decline narrowed by 0.2 percentage points from the previous month.Price fluctuations in the international market affected domestic gasoline prices to fall by 10.7%, a decrease that was 5.8 percentage points larger than the previous month, and affected the CPI to fall by about 0.35 percentage points month-on-month.Food prices were unchanged from the previous month and 0.6 percentage points below seasonal levels.Among food, the price of fresh vegetables increased by 1.3%, and the price of eggs fell by 2.1%, both significantly lower than seasonal levels; a large number of seasonal fruits were launched, and the market supply was sufficient. The price of fresh fruits fell by 3.8%, affecting the CPI to fall by about 0.07 percentage points month-on-month;The effect of the comprehensive regulation and control policy on pig production capacity has emerged. Coupled with factors such as high temperatures, heavy rainfall and other extreme weather that frequently push up transportation costs in some areas, the price of pork has increased by 4.1% from a decrease of 0.8% in the previous month, affecting the CPI to rise by about 0.07 percentage points month-on-month.Artificial intelligence promotes the iterative upgrade of consumer electronics products. The demand for related products increases and prices rise. The prices of tablet computers, computers and mobile phones increased by 11.3%, 5.5% and 1.0% respectively, which collectively affected the CPI to rise by approximately 0.03 percentage points month-on-month.Service prices increased by 0.4% from unchanged last month, affecting the CPI to increase by about 0.21 percentage points month-on-month.Among services, the demand for summer travel increased, and the prices of travel agency fees, hotel accommodation, air tickets, and transportation rentals increased by 7.2%, 6.5%, 4.2%, and 3.6% respectively, which collectively affected the CPI to rise by about 0.10 percentage points month-on-month; policy-based price adjustments continued to advance in some areas, and the price of medical services increased by 1.1%, affecting the month-on-month increase in CPI by about 0.07 percentage points.

From a year-on-year perspective, the national CPI increased by 0.5%, maintaining a moderate increase.The year-on-year CPI growth rate fell by 0.5 percentage points from the previous month, mainly due to the fall in gasoline price growth.Gasoline prices rose by 1.0%, 16.0 percentage points lower than last month. The impact on CPI was about 0.45 percentage points lower than last month, driving the increase in energy prices back to 0.6%.The price of industrial consumer goods excluding energy increased by 1.5%, a decrease of 0.2 percentage points from the previous month, affecting the CPI to increase by about 0.37 percentage points year-on-year.Among them, the prices of gold jewelry, personal care products and household appliances increased by 24.6%, 1.7% and 0.2% respectively, and the increases all fell back. The total impact on the CPI increased by about 0.13 percentage points year-on-year; the prices of computers, tablets and mobile phones increased by 17.4%, 17.2% and 8.5% respectively, and the increases all expanded. The total impact on the CPI increased by about 0.14 percentage points year-on-year.Service prices increased by 0.7%, a decrease of 0.1 percentage points from the previous month, affecting the CPI to increase by approximately 0.36 percentage points year-on-year.Among services, the price of medical services increased by 4.3%, an increase of 0.9 percentage points from the previous month, affecting the CPI to increase by approximately 0.28 percentage points year-on-year; the prices of housekeeping services, catering outside the home, and educational services increased by 1.3%, 1.0%, and 0.6% respectively, with overall stable growth rates.Food prices fell by 1.5%, a decrease of 0.1 percentage points narrower than last month, affecting the CPI to fall by about 0.25 percentage points year-on-year.Among food, the price of pork fell by 13.3%, 2.6 percentage points narrower than the previous month, affecting the CPI to fall by about 0.25 percentage points year-on-year; the prices of fresh vegetables, fresh fruits, grains, edible oils, and milk fell by 0.3%— Between 1.5%; egg prices rose by 17.8%, 2.2 percentage points lower than the previous month; mutton, beef and poultry prices increased between 1.6% and 6.2%.

2. PPI decreased month-on-month, and the year-on-year increase declined

From a month-on-month perspective, the national PPI fell by 0.7%, a decline that expanded by 0.4 percentage points from the previous month.The main characteristics of this month's PPI month-on-month operation are: First, input factors affect the price decline of related domestic industries.The prices of petroleum mining, refined petroleum product manufacturing, and organic chemical raw material manufacturing fell by 11.8%, 8.4%, and 4.2% respectively; the prices of non-ferrous metal mining and processing industries, and non-ferrous metal smelting and rolling processing industries dropped by 2.1% and 1.7% respectively. The five industries together affected the PPI to fall by about 0.65 percentage points month-on-month.Second, seasonal factors have affected prices in some industries.In July, there were more high temperatures, rains and typhoons, and the construction progress of construction projects slowed down. The prices of the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry fell by 0.8% and 0.5% respectively. Hydropower and wind power increased, and the prices fell by 10.3% and 3.9% respectively. The four industries combined affected the PPI to fall by about 0.11 percentage points month-on-month.Third, industrial transformation and upgrading and consumption improvement and expansion have led to increased demand and rising prices in some industries.New kinetic energy is growing, artificial intelligence, high-end equipment, new materials and other fields are booming. The manufacturing prices of intelligent unmanned aerial vehicles, new carbon materials, ships and related devices have increased by 2.5%, 0.4% and 0.3% respectively.Quality consumption grew rapidly, and the manufacturing prices of smart home consumer equipment and skin care cosmetics increased by 3.4% and 0.7% respectively.

From a year-on-year perspective, the national PPI rose by 3.5%, a decrease of 0.6 percentage points from the previous month.In terms of industries, among the main industries with rising prices, the oil and natural gas mining industry, petroleum, coal and other fuel processing industry, chemical raw materials and chemical products manufacturing industry increased by 3.2%, 8.2% and 9.1% respectively. The non-ferrous metal mining and processing industry, non-ferrous metal smelting and rolling processing industry increased by 22.6% and 20.2% respectively, and the ferrous metal smelting and rolling processing industry increased by 2.7%.%, the growth rate all fell back from the previous month, and the six industries together affected the PPI to rise by about 2.55 percentage points year-on-year; the coal mining and washing industry rose by 27.1%, the electrical machinery and equipment manufacturing industry rose by 5.7%, and the computer communications and other electronic equipment manufacturing industry rose by 4.4%.The impact of the above-mentioned nine industries on PPI decreased by 0.56 percentage points from the previous month.The five industries most affected by the price drop are: electric power and heat production and supply, automobile manufacturing, non-metallic mineral products, pharmaceutical manufacturing, alcoholic beverages and refined tea manufacturing, with declines ranging from 2.3% to 5.7%. The total impact on PPI is about 0.76 percentage points year-on-year, a decrease of 0.05 percentage points from the previous month.