June CPI 0.2 yy versus 0.4 yy Reuters poll forecast
June PPI 0.8 yy versus 1.4 yy in May
Economists expect more policy easing in coming months

BEIJING, July 10 Reuters China39;s consumer prices grew for a fifth month in June but missed expectations, while producer price deflation persisted, with domestic demand mired on a slow recovery track despite support measures for the world39;s secondlargest economy.

Beijing has sought to revive consumption after a stuttering postCOVID recovery, but concerns are lingering over more fundamental issues including a protracted housing downturn and job insecurity. That has dented consumer and industrial activity and reinforced calls for more effective policies.

The consumer price index CPI in June rose 0.2 from a year earlier, against a 0.3 uptick in May, the slowest in three months, data from the National Bureau of Statistics showed on Wednesday, below a 0.4 increase forecast in a Reuters poll.

The risk of deflation has not faded in China. Domestic demand remains weak, said Zhiwei Zhang, chief economist at Pinpoint Asset Management.

Food prices fell even more, despite supply disruptions caused by bad summer weather, underlining the soft demand.

Food prices slipped 2.1 yearonyear, compared with a 2 decline in May. Notably, fresh vegetable prices tumbled 7.3 versus a rise of 2.3 in May. A decline in fresh fruit prices deepened to 8.7 from 6.7 in May.

CPI edged down 0.2 monthonmonth, versus a 0.1 drop in May and worsening from…