CPI year-on-year may turn negative, PPI year-on-year decline narrowed.

Looking at it from multiple perspectives, the current policy focus on "expanding domestic demand" and "combating internal competition" is expected to narrow the year-on-year decline in the PPI in July. Industrial product prices show resilience due to policy support, but may be dragged down by seasonal factors, leading to a possible return of negative year-on-year growth in the CPI. Regarding the trend of CPI in July, Ming Ming, chief economist at CITIC Securities, stated that based on the high-frequency price indexes of major consumer goods and industrial products already published, the CPI in July is expected to increase by 0.16% month-on-month, but due to base effects, the year-on-year growth rate may fall to -0.45%. A research report by Huachuang Securities predicts a year-on-year decline of approximately -0.1% in the CPI in July, with a month-on-month increase of about 0.3%. According to a report by Zhongjin Research, due to drag from food prices, the year-on-year growth rate of CPI in July may again turn negative, weakening from 0.1% in June to -0.2%.