The latest numbers from the world's second-largest economy paint an intriguing picture. Consumer prices just hit a nearly two-year peak, driven largely by surging food costs. But here's the twist - while household spending shows some life, the production side tells a bleaker story. Factory-gate prices are sinking deeper into deflationary territory, and overall domestic consumption remains stubbornly weak.

This divergence matters for risk assets. When consumer inflation rises but producer prices fall, it squeezes manufacturing margins and signals structural demand issues. For anyone tracking macro conditions that influence capital flows into crypto and risk-on trades, these mixed signals warrant attention. The gap between what factories charge and what consumers pay keeps widening, hinting at persistent economic imbalances that could ripple through global markets.