In May, China's year-on-year CPI growth rate slightly rebounded, and the year-on-year decline in PPI expanded for the fifth consecutive month.
On Friday, June 9, data released by the National Bureau of Statistics showed that China's May CPI rose 0.2% year-on-year, slightly higher than April's 0.1%; it decreased by 0.2% from the previous month, compared with a decrease of 0.1% previously.
May's PPI year-on-year decreased by 4.6%, significantly higher than the decrease of 3.6% in April, and it was the fifth consecutive month that the decline has expanded; it decreased by 0.9% from the previous month, compared with a decrease of 0.5% previously, and it also marked the largest month-on-month decline since September of last year.
Dong Lijuan, the chief statistician of the urban division of the National Bureau of Statistics, interpreted the May inflation data:
In May, consumer demand continued to recover, market operations were generally stable, CPI decreased month-on-month, and the year-on-year growth rate slightly expanded.
International commodity prices overall fell, the overall demand for industrial products at home and abroad was relatively weak, and given the higher comparison base from the same period last year, PPI continued to decline month-on-month and year-on-year.
May CPI rebounded year-on-year to 0.2%, mainly driven by food prices In May 2023, the national consumer price index rose by 0.2% year-on-year. Of which, the urban increase was 0.2%, and the rural increase was 0.1%; food prices rose by 1.0%, non-food prices remained flat; consumer goods prices fell by 0.3%, service prices rose by 0.9%. On average from January to May, the national consumer price index rose by 0.8% from the same period last year.
In May, the national consumer price index decreased by 0.2% from the previous month. Of which, the urban decrease was 0.2%, the rural decrease was 0.2%; food prices fell by 0.7%, non-food prices fell by 0.1%; consumer goods prices fell by 0.2%, and service prices fell by 0.1%.
Year-on-year, the rebound in May CPI was mainly driven by food prices. Among them:
Food and tobacco prices rose by 1.2% year-on-year, affecting the CPI (Consumer Price Index) to rise by about 0.34 percentage points.
Among food items, fresh fruit prices rose by 3.4%, affecting CPI to rise by about 0.07 percentage points; grain prices rose by 0.5%, affecting CPI to rise by about 0.01 percentage points;
Fresh vegetable prices fell by 1.7%, affecting CPI to fall by about 0.03 percentage points; egg prices fell by 1.5%, affecting CPI to fall by about 0.01 percentage points;
Livestock meat prices fell by 1.0%, affecting CPI to fall by about 0.03 percentage points, among which pork prices fell by 3.2%, affecting CPI to fall by about 0.04 percentage points.
The other seven categories of prices rose four and fell three year-on-year. Among them:
Prices for other items and services and education, culture, and entertainment rose by 3.1% and 1.7% respectively, medical care and clothing prices rose by 1.1% and 0.9% respectively;
Transportation and communication, housing, and daily necessities and services prices fell by 3.9%, 0.2%, and 0.1% respectively.
From a month-on-month perspective, May CPI was mainly dragged down by fresh vegetables, pork, eggs, and other foods, among which:
Food and tobacco prices fell by 0.4% from the previous month, affecting CPI to fall by about 0.11 percentage points.
Among food items, fresh vegetable prices fell by 3.4%, affecting CPI to fall by about 0.07 percentage points;
Livestock meat prices fell by 1.3%, affecting CPI to fall by about 0.04 percentage points, among which pork prices fell by 2.0%, affecting CPI to fall by about 0.02 percentage points;
Egg prices fell by 1.3%, affecting CPI to fall by about 0.01 percentage points;
Fresh fruit prices fell by 0.3%, affecting CPI to fall by about 0.01 percentage points.
The other seven major categories of prices rose three, were flat in one, and fell in three from the previous month. Among them, clothing, other items and services, and medical care prices rose by 0.4%, 0.2%, and 0.1% respectively; daily necessities and services prices were flat; transportation and communication, housing, and education, culture, and entertainment prices fell by 0.6%, 0.1%, and 0.1% respectively.
Year-on-year and month-on-month, PPI declines expanded, mainly dragged down by production material prices In May 2023, the national industrial producer factory price index fell by 4.6% year-on-year, and by 0.9% from the previous month; the industrial producer purchase price index fell by 5.3% year-on-year, and by 1.1% from the previous month. On average from January to May, the industrial producer factory price index fell by 2.6% from the same period last year, and the industrial producer purchase price index fell by 2.3%.
Year-on-year, May PPI was mainly dragged down by production materials.
The price of production materials fell by 5.9% year-on-year, affecting the overall level of industrial producer factory prices to fall by about 4.54 percentage points. Among them:
Mining industry prices fell by 11.5%, raw material industry prices fell by 7.7%, processing industry prices fell by 4.6%.
The price of living materials fell by 0.1%, affecting the overall level of industrial producer factory prices to fall by about 0.02 percentage points. Among them:
Food prices rose by 0.2%, clothing prices rose by 1.4%, general daily necessities prices rose by 0.3%, durable consumer goods prices fell by 1.1%.
In the industrial producer purchase prices, prices of ferrous metal materials fell by 11.1%, chemical raw materials prices fell by 10.6%, fuel power prices fell by 7.6%, non-ferrous metal materials and wire prices fell by 5.3%, construction materials and non-metallic prices fell by 5.1%, agricultural and sideline product prices fell by 1.5%.
From a month-on-month perspective, May PPI was also mainly affected by production materials.
Production material prices fell by 1.2%, affecting the overall level of industrial producer factory prices to fall by about 0.85 percentage points. Among them:
Mining industry prices fell by 3.4%, raw material industry prices fell by 1.5%, processing industry prices fell by 0.9%.
Living material prices fell by 0.2%, affecting the overall level of industrial producer factory prices to fall by about 0.05 percentage points. Among them:
Food prices fell by 0.3%, clothing prices fell by 0.1%, general daily necessities prices rose by 0.1%, durable consumer goods prices fell by 0.4%.
In addition, in the industrial producer purchase prices, prices of ferrous metal materials fell by 2.2%, fuel power prices fell by 2.0%, chemical raw materials prices fell by 1.3%, non-ferrous metal materials and wire prices, and agricultural and sideline product prices each fell by 1.0%, construction materials and non-metallic prices fell by 0.7%.
