Economy

China's National Bureau of Statistics reported July CPI at 0.5% year on year, a six-month low, and PPI at 3.5%, both below Reuters consensus forecasts of 0.8% and 3.8% respectively. The shortfall was driven largely by a 10.7% monthly drop in gasoline prices tied to international market movements, which pulled annual energy price growth down by 16 percentage points from June. No policy response from the People's Bank of China or State Council had been issued as of August 10, 2026.

Three presidential proclamations signed July 20 schedule additional 50% ad valorem duties on specified Canadian alcoholic beverages, dairy, and a broad range of other goods beginning August 19, 2026, with USMCA origin status providing no exemption. The product scope is defined by detailed HTSUS annex schedules rather than sector labels, meaning the motor-vehicle proclamation alone covers items ranging from furniture to electronics. Canada and the U.S. were in active negotiations as of August 6, but no official announcement had altered the effective date as of this review.

The Bureau of Labor Statistics will publish July Consumer Price Index and Real Earnings figures on Wednesday, August 12. This release follows June data showing a 0.4% monthly CPI-U decline and a 3.5% annual increase, alongside a July employment report that recorded a 23,000 drop in nonfarm payrolls. Economists surveyed by Bloomberg project a 0.1% monthly rise in July headline CPI, though year-over-year and core forecasts were not available from the sources reviewed.