WTI crude fell below $90 a barrel as lower oil prices eased global inflationary pressures

Bears began to dominate commodity markets amid recession trading, with WTI crude falling below $90 a barrel for the first time since the Russia-Ukraine conflict on the evening of August 4, a far cry
from the year's high of $130.

As far as China is concerned, inflationary pressure in the second half of the year comes from two aspects: first, imported inflation, including high energy prices, food crisis, and phased depreciation of the exchange rate; The second is domestic inflation factors, including a new round of pig cycle and the strengthening of PPI transmission to CPI
.

Xie Yunliang, chief analyst of Cinda Securities Macro, told reporters that a new round of pig cycle will be launched in the third quarter, and the bottom of pig prices within the year has passed
.
With the economic climb and demand repair, PPI will strengthen transmission
to CPI.
"It is expected that the pivot will be about 2.
8% in the second half of the year, 2.
3% in the whole year, and a high of about
3.
3% in the year.
" However, the expectation that imported inflation is expected to ease due to the current pullback in oil prices may limit the upside
of China's CPI.