Fluctuating financial markets and increasing inflation have led to dropping consumer confidence, according to the Bankcard Consumer Confidence Index, which was jointly released by the Xinhua News Agency and China UnionPay.

The June index dropped 0.87 percentage points month-on-month, and 1.11 percentage points year-on-year.

The index tracks consumption expenditure on non-necessities.

The A-share market plunge in June has significantly impacted consumer willingness to spend on non-essential items, the report said.

Inflation higher than predicted

Shanghai investor sentiment drops, report says