China’s Inflation Cools as Oil Shock of Iran War Starts to Ease

China's factory-gate inflation has eased for the first time since the Iran war began in late February. Consumer prices also decelerated, with the July CPI rising at its slowest pace since January. These trends indicate that the cost pressures resulting from the oil shock are starting to fade as the impact from the Iran war ebbs, leading to a general cooling of monthly inflation across both producer and consumer price indices within the country.