CICC pointed out that the year-on-month change in PPI from rise to decline in June was mainly driven by the impact of the decline in international oil prices, while the year-on-year increase in PPI increased to 4.1% from 3.9% last month, supported by a low base in the same period last year. Affected by weakening prices of industrial consumer goods driven by falling prices such as gasoline and gold jewellery, CPI fell 0.3% month-on-month and fell back to 1.0% year over year, and core inflation also slowed slightly. The scissor difference in the price of means of production and means of living, and the PPI and CPI scissor differences have all widened further, or reflect continued structural differentiation characteristics and continued pressure on middle- and downstream profits. Looking ahead, CICC believes that if oil prices stop rising significantly and the month-on-month momentum continues to weaken, compounded by last year's “reverse internal volume”, PPI may show a year-on-year decline trend in the second half of the year. Under weak terminal demand and short-term decline in pig prices, CPI is expected to remain moderate year-on-year for the third quarter.

CICC pointed out that the year-on-month change in PPI from rise to decline in June was mainly driven by the impact of the decline in international oil prices, while the year-on-year increase in PPI increased to 4.1% from 3.9% last month, supported by a low base in the same period last year. Affected by weakening prices of industrial consumer goods driven by falling prices such as gasoline and gold jewellery, CPI fell 0.3% month-on-month and fell back to 1.0% year over year, and core inflation also slowed slightly. The scissor difference in the price of means of production and means of living, and the PPI and CPI scissor differences have all widened further, or reflect continued structural differentiation characteristics and continued pressure on middle- and downstream profits. Looking ahead, CICC believes that if oil prices stop rising significantly and the month-on-month momentum continues to weaken, compounded by last year's “reverse internal volume”, PPI may show a year-on-year decline trend in the second half of the year. Under weak terminal demand and short-term decline in pig prices, CPI is expected to remain moderate year-on-year for the third quarter.