Asia

The weak monthly reading underlines the challenge of strengthening household demand in an economy long driven by investment and exports.

The latest CPI evidence highlights weak domestic pricing power and a very different policy challenge from the higher inflation faced elsewhere.

The July outlook balanced solid wages and technology investment against slower 2026 growth and uncertainty around energy supplies.

Growth slowed in the second quarter as policymakers tried to support domestic demand while navigating trade and property-sector pressures.