Official data indicates that in May 2026, the Producer Price Index (PPI) for industrial products increased by 3.9% year-on-year and 0.5% month-on-month. The Consumer Price Index (CPI) for the same period rose by 1.2% year-on-year.
Key Insights from the May 2026 CPI and PPI Data
In May, the consumer market operated with overall stability. The CPI decreased by 0.1% month-on-month and increased by 1.2% year-on-year. 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 PPI increased by 0.5% month-on-month and 3.9% year-on-year.
Consumer Price Index Remains Largely Unchanged
On a month-on-month basis, the national CPI fell by 0.1%, compared to a 0.3% increase in the previous month. This shift was primarily due to changes in energy and service prices. Influenced by the transmission of international oil prices, domestic gasoline prices shifted from a 12.6% increase last month to a 0.3% decrease, causing the energy price category to move from a 5.7% increase to a 0.1% decrease. Its impact on the month-on-month CPI changed from adding 0.39 percentage points last month to subtracting 0.01 percentage points this month. Due to a seasonal decline in travel after the Labor Day holiday, service prices shifted from a 0.5% increase to a 0.1% decrease, changing their impact on the month-on-month CPI from adding 0.22 percentage points to subtracting 0.03 percentage points. Specifically, vehicle rental and airfare prices shifted from increases of 8.6% and 29.2% last month to decreases of 6.8% and 6.3% this month, together contributing to a roughly 0.04 percentage point decline in the month-on-month CPI. The launch of new summer clothing lines drove clothing prices up by 0.6%. Strong AI-related demand pushed prices for mobile phones and tablet computers up by 1.6% and 1.1%, respectively. These three items together contributed to a roughly 0.05 percentage point increase in the month-on-month CPI. Food prices fell by 0.4%, with the rate of decline narrowing by 1.2 percentage points compared to the previous month, contributing to a roughly 0.07 percentage point decline in the month-on-month CPI. Within food, the ample supply of seasonal vegetables led to a 3.6% drop in fresh vegetable prices, contributing to a roughly 0.06 percentage point decline. Ample pork supply led to a 1.6% price decrease, with the rate of decline narrowing by 4.1 percentage points, contributing to a roughly 0.03 percentage point decline. Factors including a temporary supply tightness, decreased egg production rates due to summer heat, and concentrated pre-holiday purchases for the Dragon Boat Festival led to a 6.1% increase in egg prices, contributing to a roughly 0.03 percentage point increase.
On a year-on-year basis, the national CPI rose 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, contributing to a roughly 1.18 percentage point increase in the year-on-year CPI. Within this category, gasoline prices continued to accelerate, rising by 23.5% largely due to a lower comparison base from the same period last year, contributing to a roughly 0.66 percentage point increase. The increase in gold ornament prices moderated further to 39.0%, contributing to a roughly 0.17 percentage point increase. Prices for household appliances and clothing rose by 3.4% and 1.5%, respectively, together contributing to a roughly 0.12 percentage point increase. Service prices rose by 0.8%, with growth slowing by 0.1 percentage point, contributing to a roughly 0.40 percentage point increase. Within services, travel service prices rose by 2.8%, with growth 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 point, contributing to a roughly 0.30 percentage point decrease in the year-on-year CPI. Within food, pork prices fell by 16.1%, with the rate of decline widening by 0.9 percentage points, contributing to a roughly 0.31 percentage point decrease. Fresh fruit prices fell by 2.2%, contributing to a roughly 0.04 percentage point decrease. Prices for eggs, mutton, beef, poultry, aquatic products, and fresh vegetables all increased, with gains ranging between 0.6% and 8.4%, together contributing to a roughly 0.13 percentage point increase.
Producer Price Index Maintains Upward Trajectory
On a month-on-month basis, the national PPI rose by 0.5%, with the growth rate slowing by 1.2 percentage points compared to the previous month. Key features of this month's PPI movement include: First, industrial structure optimization 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. Accelerated electrification, the deep integration of artificial intelligence across sectors, and growing computing power demand drove 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 rising by 4.8% and 3.1%, respectively. Prices in the computer, communication, and other electronic equipment manufacturing industry rose by 0.6%, with integrated circuit packaging and testing series, and external storage devices and components prices 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 rising by 8.0% and 1.2%, respectively. Second, seasonal demand increases drove price rises in some industries. Preparations for peak summer power demand and increased coal demand for non-power uses pushed prices in the coal mining and washing industry up by 3.2% month-on-month. 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, the transmission of international crude oil price fluctuations caused domestic related industry prices to shift from increases to decreases or see slower growth. Prices in the petroleum extraction industry shifted from a 24.1% increase last month to a 1.8% decrease this month. Prices in the refined petroleum product manufacturing industry shifted from a 19.0% increase to a 0.3% decrease. Prices in the chemical raw 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 compared to the previous month.
On a year-on-year basis, the national PPI rose by 3.9%, with the growth rate accelerating by 1.1 percentage points. Analyzing by industry, among the sectors with price increases, the non-ferrous metal mining and dressing industry rose by 36.5% year-on-year, the non-ferrous metal smelting and rolling processing industry rose by 24.0%, the coal mining and washing industry rose by 10.0%, the electrical machinery and equipment manufacturing industry rose by 4.5%, the computer, communication, and other electronic equipment manufacturing industry rose by 2.1%, and the ferrous metal smelting and rolling processing industry rose by 1.0%. These six industries together contributed to a roughly 2.56 percentage point increase in the year-on-year PPI, with their upward pull effect increasing by 0.51 percentage points from the previous month. The petroleum and natural gas extraction industry, the petroleum, coal, and other fuel processing industry, and the chemical raw materials and chemical products manufacturing industry rose by 35.7%, 18.4%, and 12.7%, respectively, together contributing to a roughly 1.96 percentage point increase in the year-on-year PPI, with their upward pull effect increasing by 0.46 percentage points. Among sectors with price declines, the non-metallic mineral products industry fell by 5.1%, the production and supply of electric power and heat power industry fell by 4.4%, the automobile manufacturing industry fell by 2.0%, and the agricultural and sideline food processing industry fell by 1.4%. These four industries together contributed to a roughly 0.75 percentage point decrease in the year-on-year PPI, with their downward pull effect increasing by 0.01 percentage points from the previous month.
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