China's consumer price index (CPI), a main gauge of inflation, is expected to rise mildly at a low level in the second half of this year, an official from the National Bureau of Statistics (NBS) said on Tuesday.
At a press conference held in Beijing, NBS deputy head Sheng Laiyun briefed the media on the key economic indicators of the first half of the year.
The country's CPI rose 0.1 percent year on year in June, reversing the downward trend registered in the previous months, as the nation's measures aimed at expanding domestic demand and the recovery of industrial consumer goods prices supported price rises.
In June, the core CPI went up by 0.7 percent year on year, 0.1 percentage points higher than that of the previous month.
"In June, the CPI showed positive trend, a result of multiple contributing factors. In June, the CPI increased by 0.1 percent year on year, marking the first rise after 0.1 percent of slipping in the past several months. The core CPI rose by 0.7 percent year on year, reaching its highest level since last year. This indicates that under the combined effects of measures to expand domestic demand and promote a reasonable price recovery, market prices show a positive change," he said.
Sheng noted that the rise in the CPI in June was primarily driven by the recovery of industrial consumer goods prices, supported by the policies on large-scale equipment upgrades and consumer goods trade-in programs.
In addition, there are the ripple effects of price changes in the international market. At the same time, the high temperatures and heavy rainfall in June affected the supply of some vegetables, while prices of certain seafood, aquatic products, and beef also experienced a temporary increase. These factors collectively supported the CPI turning positive in June, according to Sheng.
He also outlined some supporting reasons for a moderate rebound of the CPI at a low level in the second half of the year. "For the second half of this year, our overall assessment is that prices will moderately rise at a low level. There are several supporting factors. First, the economy is maintaining a stable and positive trend and aggregate demand continues to expand, which offers macroeconomic conditions for stable prices. Second, relevant policies, especially those aimed at expanding domestic demand, continue to yield effects, driving related consumer demand and strongly promoting a stable rebound of prices of consumer goods. Third, relevant meetings of the central government have called for the regulation of low-price and disorderly competition among enterprises in accordance with laws and regulations, which will also help normalize market order and improve the market environment," Sheng said.
China's CPI expected to rise mildly at low level in second half of 2025: official
Officials and business leaders from both China and the United States gathered in Berkeley, California on Friday to discuss the future of trade and investment between China and the San Francisco Bay Area, with many hoping to overcome the recent strain brought by the Trump administration's tariffs.
The China Council for the Promotion of International Trade hosted a business breakfast exchange meeting on Friday morning, with the council's chairman Ren Hongbin sending out a clear message of the vast economic potential which is there to be tapped into.
"The Chinese economy is very much innovation driven. And the strategic emerging industries, such as new energy, new materials, low carbon, aerospace, bio-pharmacy and the low-altitude economy, will generate a trillion-yuan level or even larger markets. So, I think that will provide enormous opportunities and room for China and U.S. companies to cooperate," said Ren.
He further stressed the China International Supply Chain Expo in Beijing as an example of an event where San Francisco Bay Area companies like NVIDIA and Apple were active participants and direct beneficiaries.
Meanwhile, Chinese Consul General in San Francisco Zhang Jianmin said that against the backdrop of a global economic slowdown, greater cooperation in the innovation sector is now more important than ever.
"The [San Francisco] Bay Area is home to many of the world's top tech companies and offers a sound innovation ecosystem. China has a super big market, rich application scenarios and a complete industrial supporting system. There exists tremendous potential for both sides to have more mutually beneficial cooperation by tapping into their complementary strengths," said Zhang.
Attendees did voice concerns over how the Trump administration's tariffs are impacting business.
With China accounting for nearly 30 percent of the Port of Oakland's total trade volume, the port's executive director Kristi McKenney stressed the need for greater stability and certainty.
"The tariffs in many cases were never actually implemented or were changed before they were implemented. So those linkages are a bit more challenging. I think the bigger issue will be certainty in the economy. And if there's lack of certainty, if we see economic difficulty, then you're going to see job losses," said McKenney.
Oakland's Mayor Barbara Lee said that it is very much business as usual, despite the recent difficulties.
"While we understand the challenges of tariffs, the exports and imports are still continuing, and our port is still a large containerized port doing business with China. And we're going to strengthen that relationship. We may have our differences on issues, on policies, but we here in Oakland understand that we're a global city and we believe the trade brings friendships, brings understanding, and also brings economic benefits to both countries," she said.
Chinese, US officials, business leaders meet in California to deepen mutual understanding
