China's consumer price index (CPI) rose just 1% year-on-year in June, edging lower as cooling energy and commodity prices dampened headline inflation.
The official data, released Wednesday, indicates that domestic demand remains subdued despite earlier signs of stabilization in the broader economy.
The deceleration in consumer prices comes as a relief to policymakers monitoring deflationary risks, but it also underscores the fragility of the recovery.
With energy costs—a significant component of the CPI basket—exerting downward pressure, the print suggests that the transmission of global commodity strength to Chinese households is limited.
This development adds to a diverging picture in China's inflation data.
While consumer prices softened, producer prices (PPI) accelerated in June, driven by strong export orders and rising input costs for manufacturers.