CITIC Securities: The rebound speed of price indicators in a weak demand environment may be slow.

On July 11, CITIC Securities pointed out that the CPI in June was once again lower than market expectations, and the super-seasonal pump of pork prices failed to hedge the weak performance of the core CPI, and the problem of insufficient demand on the residential side became more prominent. The effect of utility price increases in some areas, which was hotly discussed in the market in the early stage, has been reflected in the CPI, but the overall impact is not large. Overall, although the period of low price pressure during the year has passed, the recovery rate of price indicators may be slower in an environment of weak demand. The follow-up market should maintain a high degree of follow-up in response to the three questions of "the degree of improvement of the core CPI", "whether the PPI can continue to be positive month-on-month", and "when will the GDP deflator turn positive".