China's June CPI inflation slowed down to 1.0% year-on-year, down from 1.2% in May. This came in a hair lower than forecasts (market: 1.1%, ING: 1.1%), and marked a three-month low. The primary reason for the slowdown was non-food inflation, which fell 0.4pp in June to 1.5% YoY. Within non-food categories, we saw transportation fuel inflation drop sharply to 15.3% YoY, down from 21.1% in May. Amid the broader sharp drop of crude oil prices, Beijing N92 gasoline prices were cut twice in June, and once already in July. This suggests the category could continue to see some relief in next month's inflation data, if ... (full story)