PHOTO: REUTERS[BEIJING] China’s producer price inflation eased more than expected in July to its weakest in three months, while consumer inflation also cooled, official data showed on Sunday (Aug 9), as global energy prices retreated despite the US-Israel war against Iran. “Lower oil prices, combined with weakening demand, caused both (consumer and producer price inflation) in July to come in below expectations. Oil price trends remain uncertain, meaning their impact on inflation is also likely to be uncertain,” said Xing Zhaopeng, ANZ’s senior China strategist. The core consumer price index, which excludes volatile costs for food and energy, rose 0.9 per cent on year, food prices fell 1.5 per cent. Higher producer prices were driven mainly by increases in the mining and raw materials sectors, the statistics agency said.