China's producer prices fell by 3.6% in July, beating analysts' forecasts, amid weak domestic demand and trade uncertainties.

China's National Bureau of Statistics reported a 3.6% annual decline in producer prices in July, marking the second consecutive month of decline. Although the consumer price index remained stable, core inflation rose to 0.8%, the highest level in 17 months. Analysts warn of persistent deflationary pressures amid an unsettled housing market and tense trade relations with the US. Government measures could support PPI but the impact is uncertain without significant demand stimulus.