China Consumer Inflation Slows Sharply Amid Easing Commodity Costs

China's consumer inflation slowed more than expected in May, according to data released by Crypto Briefing. The country's consumer price index (CPI) came in at 1.2% year-over-year, matching April's reading but falling short of the 1.3% economists had predicted.

The producer price index (PPI), on the other hand, surged 3.9% year-over-year in May, driven primarily by rising costs in non-ferrous metals like copper, aluminum, and nickel.

Core CPI, which strips out volatile food and energy components, grew 1.1% annually, easing slightly from prior months and suggesting the underlying demand picture in China remains tepid despite headline-grabbing factory gate inflation.

The moderation of geopolitical tensions surrounding Iran has also contributed to the softer CPI print, with oil prices pulling back as the immediate risk premium associated with supply disruptions has faded.