China July inflation eases

China's producer price inflation eased more than expected in July, slowing to a three-month low of 3.5% year-on-year, down from 4.1% in June, while consumer inflation cooled to a six-month low of 0.5%. The data, released by the China — National Bureau of Statistics of China, reflected weaker domestic demand and retreating global energy prices despite the US-Israel war against Iran. Analysts noted the slowdown was consistent with other activity data such as the PMI index. In response, China's leaders pledged to accelerate fiscal spending on infrastructure projects and signaled stronger policy support to bolster growth, though the transmission of fiscal measures is expected to lag by about a quarter. The easing inflation was driven by lower oil prices and soft demand, while upstream and high-tech sectors maintained profit growth but domestic market-facing manufacturers struggled with sluggish demand and rising input costs.