July data showed China’s CPI up 0.5% year on year and core CPI up 0.9%, while PPI rose 3.5%, pointing to moderate price gains and firmer underlying demand at the start of H2 2026.
Lower crude oil prices drove the month-on-month pullback—CPI slipped 0.1% and PPI fell 0.7% from June—yet first-half averages still showed gradual firming, with CPI up 1.0%, core CPI 1.2% and PPI 1.5%.
69.57 trillion yuan in first-half GDP translated into 4.7% real growth, supported by 5.2% services growth, 5.4% industrial output growth, and faster expansion in high-tech manufacturing at 13.3%.
3.95 trillion yuan in industrial profits, up 18.7%, and a 5.70% profit margin suggested improving operating conditions even as fixed-asset investment fell 5.7%, dragged down by an 18.0% drop in real-estate development.
IMF revisions underscored that resilience: it cut its 2026 global growth forecast to 3.0% but raised China’s to 4.6%, as China’s first-half trade rose 16.9% and imports jumped 22.1%.