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flag China exits deflation with slight CPI rise, but economy still faces challenges.

flag China's consumer price index (CPI) rose slightly to 0.1% year-on-year in June, ending a period of deflation. flag However, food prices fell by 0.3%, and the broader economy continues to face deflationary pressures, with the producer price index (PPI) dropping by 3.6%. flag Despite some improvements, policymakers are cautious, focusing on addressing price competition while preparing for potential labor market challenges.

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