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China’s annual inflation rate slowed to 0.5% in July 2026, down from 1.0% in June and below market expectations of 0.8%. This was the lowest rate since January, reflecting a continued decline in food prices and a further moderation in non-food inflation. On a monthly basis, consumer prices fell by 0.1%, contrary to forecasts for a 0.2% increase, after a 0.3% drop in June.
