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![KobeissiLetter Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::3316376038.png) The Kobeissi Letter [@KobeissiLetter](/creator/twitter/KobeissiLetter) on x 945.4K followers
Created: 2025-07-12 20:54:00 UTC

China is dealing with severe deflation:

China’s producer prices (PPI) dropped -XXX% YoY in June, the sharpest decline since July 2023.

This also marks the 33rd consecutive month of factory-gate deflation, one of the longest streaks on record.

Meanwhile, the consumer price index (CPI) increased +0.1% YoY, ending a four-month decline.

However, excluding precious metals, CPI remained in deflation.

Weak domestic demand, overcapacity, and price wars continue to weigh on prices.

China's deflationary spiral is intensifying.

![](https://pbs.twimg.com/media/GvrTRR4XoAAkbZf.jpg)

XXXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1944138193580044541/c:line.svg)

**Related Topics**
[futures trading](/topic/futures-trading)
[inflation](/topic/inflation)
[marks](/topic/marks)
[ppi](/topic/ppi)
[deflation](/topic/deflation)
[china](/topic/china)

[Post Link](https://x.com/KobeissiLetter/status/1944138193580044541)