China’s August CPI rose 0.8% year-on-year, rebounding from July’s 0.5% low, with non-food prices (up 1.2%) and transport costs providing the main lift amid firmer fuel and travel demand, while food prices stayed in deflation. Analysts tracking the September print cite this momentum alongside subdued domestic demand, lingering property-sector weakness, and mixed signals from commodity prices as reasons the 0.9–1.0% and 0.7–0.8% ranges remain closely matched in trader pricing. Core inflation held near 1.0%, supporting modest further gains, yet persistent pork and vegetable deflation plus soft consumption cap upside risks. Full-year 2026 forecasts cluster around 0.8–1.1%, reflecting expectations that any policy support for demand will produce only gradual price recovery rather than a sharp acceleration.