China’s inflation remained near zero in May, creating room for the central bank to ease monetary policy amidst increasing calls for interest rate cuts to boost the economy’s recovery. The consumer price index rose 0.2% YoY, in line with forecasts. Producer prices fell by 4.6% due to lower commodity prices and weak demand. Core inflation slowed to 0.6% in May, down from 0.7% in the prior month. Concurrently, the onshore yuan dropped further to 7.13 per USD, set for its fifth week of declines.