China's consumer inflation eases in July as factory-gate deflation moderates

China's consumer price index rose at a slower pace in July, according to data reported Monday, while producer prices remained in deflation, though the decline moderated from the prior month. The combination points to still-soft domestic demand alongside some relief at the factory gate, where prices have been falling for an extended stretch. Easing consumer inflation limits the immediate pressure on policymakers from the price side, while continued producer-price weakness keeps margins under strain for industrial firms. The release adds to the mixed picture facing Chinese authorities, who have leaned on targeted support measures rather than broad stimulus.