China CPI Slows to 1.0% YoY in June, Falls 0.3% MoM, Firmer PBoC Fix

China's annual inflation rate dropped to 1.0% in June, after arriving at a rise of 1.2% in May. The markets' slightly firmer print of 1.1%, the National Bureau of Statistics of China reported Thursday. On a monthly basis, the inflation declined 0.30% in June, compared with the 1% slide in May. Prior to the market opening, the People's Bank of China set the yuan's central parity rate at 6.8036 per US dollar on Thursday. Comparatively, today's fixing came 41 pips firmer than Wednesday's fixing of 6.8077 but 58 pips weaker than the Reuters estimate of 6.7978. At the time of writing, onshore yuan grew 0.11% to 6.7947 against the dollar, and its offshore counterpart rose 0.09% to 6.79933 in the late Asian session. The spot yuan is allowed to trade at a maximum of 2% on either side of the fixed midpoint each day. The PBoC fixes matter for the US dollar because China manages the yuan against many currencies, but the dollar sits in the middle of most currency pricing. So any change in yuan management can also affect G20/USD pairs globally. The China Foreign Exchange Trade System RMB Index, which measures the yuan against major currencies, inched up 0.06 points to 102.65, as per the.