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Story · China · 10 Aug 2026

China's CPI was 0.5% higher year-on-year in July

China's CPI was 0.5% year on year in July 2026, while consumer prices fell 0.1% month on month.

Inflation
Relevance date 10 Aug 2026, 01:30Updated 6 Sept 2026, 07:34Exam relevance 93/100
Shoppers and stalls at a market in China

Verified sources

Check the original evidence before reading the explanation.

Primary sourceNational Bureau of Statistics of China →Consumer Prices in July 2026
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0.5%

Annual CPI inflation

-0.1%

Monthly CPI change

0.9%

Year-to-date CPI inflation

Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause

Story toolsReport / correction
Understand the storyExpand

China's National Bureau of Statistics reported annual CPI inflation of 0.5% in July 2026. CPI moved -0.1% over the month, while the January-to-July average was 0.9% year on year.

What happened

Consumer prices changed 0.5% year on year in July 2026. On a monthly basis CPI changed by -0.1%, and the year-to-date average was 0.9%.

Why it matters

CPI tracks changes in household consumer prices and therefore affects real purchasing power, consumption and policy expectations. China's inflation rate also matters globally because weak or strong domestic demand can influence commodity demand and traded-goods prices.

Economic context

For A-Level Economics, this is current evidence for inflation, aggregate demand and real incomes in a major emerging economy. Distinguish the annual rate from the one-month price change and consider whether food, energy or demand conditions are driving the movement.

All key dataExpand
Monthly CPI change
-0.1%
Annual CPI inflation
0.5%
Year-to-date CPI inflation
0.9%
Terms explainedExpand

Month-on-month

A comparison with the immediately previous month, rather than with the same month a year earlier.

Year-on-year

A comparison with the same period one year earlier, which helps separate annual change from short-run monthly movements.

Use it in an examExpand

Evidence

China's CPI was 0.5% year on year in July 2026, while consumer prices fell 0.1% month on month.

Explain

CPI tracks changes in household consumer prices and therefore affects real purchasing power, consumption and policy expectations. China's inflation rate also matters globally because weak or strong domestic demand can influence commodity demand and traded-goods prices.

Evaluate

For A-Level Economics, this is current evidence for inflation, aggregate demand and real incomes in a major emerging economy. Distinguish the annual rate from the one-month price change and consider whether food, energy or demand conditions are driving the movement.

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