NBS: China's June CPI rises 0.2%, PPI falls 0.8% YoY

The CPI posted the second consecutive on-month drop in June, and its on-year growth shrank from that registered in May, the data showed. "The ample supply of consumer goods kept weighing on their prices," explained Dong Lijuan, a senior statistician with NBS.

Last month, China's food prices dropped 0.6% on month and fell 2.1% on year, with the prices of fresh vegetables, fruits, and milk all losing ground, according to NBS data.

Meanwhile, the prices of passenger vehicles, home appliances, and durable goods generally moved downward in June due to the various price-off promotion activities held by producers for the purpose of improving their sales performance for the first half of this year, Dong noted.

However, domestic prices related to tourism, such as car rental fees and air fare, went up last month as travel activities increased ahead of the summer vacation for most Chinese students over July-August, the data showed.

Excluding food and energy, China's core inflation dipped 0.1% on month but rose 0.6% on year in June, according to the data.

As for China's PPI, it resumed downward trends on both monthly and yearly bases in June. The waning demand for industrial products across the country was mainly to blame, Dong observed.

For example, the country's steelmaking and fabrication industry saw its ex-work prices in June dip 0.6% on month and lose 2.1% on year, as high temperatures and continual rains kept curbing steel consumption among end-users nationwide, according to the data.

Domestic prices of oil and natural gas drilling sector also slid 2.9% on month in June, dragged by the weakening of global oil prices, though compared to the same period last year the prices went up 8%, the data showed.

Over January-June, China's CPI edged up 0.1% on year, while the country's PPI dropped 2.1% on year, according to NBS statistics.

Written by Anthea Shi, shihui@Myteel.com

Edited by Alyssa Ren, rentingting@mysteel.com