The consumer market maintained overall stability in May, with the Consumer Price Index (CPI) registering a month-on-month decline of 0.1% and a year-on-year increase of 1.2%. The core CPI, which excludes food and energy prices, rose by 1.1% year-on-year.
Influenced by factors including increased demand in certain domestic sectors and the transmission of international commodity price fluctuations, the Producer Price Index (PPI) saw a month-on-month increase of 0.5% and a year-on-year rise of 3.9%.
Consumer Price Index Shows General Stability
On a month-on-month basis, the national CPI decreased by 0.1%, a shift from the 0.3% increase recorded in the previous month, primarily due to changes in energy and service prices.
Transmitted from international oil price movements, domestic gasoline prices shifted from a 12.6% increase last month to a 0.3% decrease, leading energy prices to turn from a 5.7% rise to a 0.1% fall. This change in energy prices contributed a downward pull of 0.01 percentage points on the month-on-month CPI, compared to an upward push of 0.39 percentage points in the prior month.
Following the seasonal decline in travel after the May Day holiday, service prices moved from a 0.5% increase to a 0.1% decrease. Their impact on the month-on-month CPI shifted from an upward contribution of 0.22 percentage points to a downward pull of 0.03 percentage points.
Within this category, prices for vehicle rentals and air tickets, which rose by 8.6% and 29.2% respectively last month, turned to declines of 6.8% and 6.3%. Together, these two items contributed to a month-on-month CPI decrease of approximately 0.04 percentage points.
The launch of new summer clothing collections drove clothing prices up by 0.6%. Strong demand related to artificial intelligence pushed prices for mobile phones and tablet computers up by 1.6% and 1.1% respectively. These three items combined contributed to a month-on-month CPI increase of about 0.05 percentage points.
Food prices fell by 0.4%, with the rate of decline narrowing by 1.2 percentage points from the previous month, contributing to a month-on-month CPI decrease of roughly 0.07 percentage points.
Within the food category, a large seasonal supply of vegetables led to a 3.6% drop in fresh vegetable prices, contributing about 0.06 percentage points to the month-on-month CPI decline. Ample pork supply resulted in a price decrease of 1.6%, with the rate of decline narrowing by 4.1 percentage points from last month, contributing about 0.03 percentage points to the CPI drop.
Influenced by factors including a temporary tightness in supply, reduced egg-laying rates in summer heat, and concentrated pre-holiday purchases for the Dragon Boat Festival, egg prices rose by 6.1%, contributing approximately 0.03 percentage points to the month-on-month CPI increase.
Year-on-year, the national CPI increased by 1.2%, maintaining the same growth rate as the previous month. Prices for industrial consumer goods rose by 3.9%, accelerating by 0.4 percentage points from last month and contributing about 1.18 percentage points to the year-on-year CPI increase.
Among industrial consumer goods, gasoline prices continued to accelerate their rise to 23.5%, influenced by a lower comparison base from the same period last year, contributing about 0.66 percentage points to the year-on-year CPI increase.
The increase in gold ornament prices continued to slow, rising by 39.0% and contributing about 0.17 percentage points. Prices for household appliances and clothing rose by 3.4% and 1.5% respectively, together contributing about 0.12 percentage points to the CPI increase.
Service prices increased by 0.8%, with the growth rate easing by 0.1 percentage point from the previous month, contributing about 0.40 percentage points to the year-on-year CPI increase.
Within services, travel service prices rose by 2.8%, with the growth rate slowing by 0.9 percentage points. Price increases for other services were generally stable.
Food prices fell by 1.7%, with the rate of decline widening by 0.1 percentage points from the previous month, contributing about 0.30 percentage points to the year-on-year CPI decrease.
Within the food category, pork prices dropped by 16.1%, with the decline widening by 0.9 percentage points, contributing about 0.31 percentage points to the CPI decrease. Fresh fruit prices fell by 2.2%, contributing about 0.04 percentage points.
Prices for eggs, mutton, beef, poultry, aquatic products, and fresh vegetables all increased, with gains ranging between 0.6% and 8.4%. Together, these items contributed about 0.13 percentage points to the year-on-year CPI increase.
Producer Prices Maintain Upward Trajectory
On a month-on-month basis, the national PPI increased by 0.5%, with the growth rate slowing by 1.2 percentage points from the previous month. The main characteristics of the PPI's month-on-month performance this month were as follows.
First, industrial restructuring and upgrading drove price increases in some sectors. The ongoing renewal of manufacturing equipment pushed prices in the ferrous metal smelting and rolling processing industry up by 1.2% month-on-month.
The acceleration of electrification, the deep integration of artificial intelligence across fields, and growing computing power demand contributed to price increases in non-ferrous metals, electrical machinery, and computer-related industries.
Prices in the non-ferrous metal smelting and rolling processing industry rose by 1.1%, with tin smelting and copper smelting prices increasing by 4.8% and 3.1% respectively.
Prices in the computer, communication, and other electronic equipment manufacturing industry increased by 0.6%, with integrated circuit packaging and testing series, and external storage devices and components rising by 2.9% and 1.9% respectively.
Prices in the electrical machinery and equipment manufacturing industry rose by 0.5%, with optical fiber manufacturing and wire and cable manufacturing prices increasing by 8.0% and 1.2% respectively.
Second, seasonal demand increases drove price gains in some industries. Demand for coal preparation for peak summer periods and non-power coal use increased, leading to a 3.2% month-on-month rise in coal mining and washing industry prices.
As temperatures gradually rose in May, prices for household air conditioner manufacturing and household refrigeration appliance manufacturing increased by 0.9% and 0.3% respectively, while power supply prices rose by 0.4%.
Third, fluctuations in international crude oil prices transmitted to domestic related industries, causing prices to shift from increase to decrease or see slower growth.
Petroleum extraction prices shifted from a 24.1% increase last month to a 1.8% decrease month-on-month. Refined petroleum product manufacturing prices turned from a 19.0% increase to a 0.3% decrease.
Prices in the raw chemical materials and chemical products manufacturing, chemical fiber manufacturing, and rubber and plastic products industries rose by 2.0%, 1.5%, and 1.5% respectively, with growth rates slowing by 6.3, 4.1, and 0.2 percentage points from the previous month.
Year-on-year, the national PPI increased by 3.9%, with the growth rate expanding by 1.1 percentage points from the previous month.
Analyzed by industry, among sectors with price increases, the non-ferrous metal mining and dressing industry rose by 36.5% year-on-year, non-ferrous metal smelting and rolling processing by 24.0%, coal mining and washing by 10.0%, electrical machinery and equipment manufacturing by 4.5%, computer, communication and other electronic equipment manufacturing by 2.1%, and ferrous metal smelting and rolling processing by 1.0%.
These six industries together contributed about 2.56 percentage points to the year-on-year PPI increase, with their upward pull increasing by 0.51 percentage points from the previous month.
The petroleum and natural gas extraction industry, petroleum, coal and other fuel processing industry, and raw chemical materials and chemical products manufacturing industry rose by 35.7%, 18.4%, and 12.7% respectively. Together, they contributed about 1.96 percentage points to the year-on-year PPI increase, with their upward pull increasing by 0.46 percentage points from last month.
Among industries with price declines, the non-metallic mineral products industry fell by 5.1%, the production and supply of electric power and heat power fell by 4.4%, the automobile manufacturing industry fell by 2.0%, and the agricultural and sideline food processing industry fell by 1.4%.
Together, these industries contributed about 0.75 percentage points to the year-on-year PPI decrease, with their downward pull increasing by 0.01 percentage points from the previous month.
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