China’s June producer price index (PPI) declined 3.6% year-on-year—the steepest drop since July 2023—showing prolonged deflationary pressure. Export-oriented firms are feeling the squeeze, as the ongoing housing slump and global trade uncertainty weigh on industrial demand. While consumer prices nudged up 0.1%, a rebound from prior contraction, sluggish factory output and weak new export orders indicate deeper economic fragility. Analysts expect a growth slowdown, with policymakers under pressure to unleash further fiscal and monetary stimulus.