Data released by the National Bureau of Statistics on December 10 showed that China's Producer Price Index (PPI) continued to rise month-on-month in November.
Year-on-year, the PPI fell 2.2% in November, while industrial purchasing prices dropped 2.5%. Both the PPI and purchasing prices increased 0.1% month-on-month, maintaining the same growth rate as October. From January to November, the PPI declined 2.7% year-on-year, with purchasing prices down 3.1%.
**1. Year-on-Year Changes in Industrial Producer Prices** In November, producer prices for means of production fell 2.4%, dragging the overall PPI down by approximately 1.79 percentage points. Specifically, mining industry prices dropped 6.1%, raw material prices declined 2.9%, and processing industry prices decreased 1.9%. Prices for consumer goods fell 1.5%, contributing to a 0.38-percentage-point decline in the overall PPI. Within this category, food prices dropped 1.5%, clothing prices fell 0.3%, general daily necessities rose 1.1%, and durable consumer goods declined 3.6%.
Purchasing prices for fuel and power dropped 6.9%, building materials and non-metallics fell 5.8%, chemical raw materials declined 5.0%, agricultural and sideline products decreased 4.9%, ferrous metals dropped 3.0%, and textile materials fell 1.9%. In contrast, non-ferrous metals and wire prices rose 8.1%.
**2. Sequential Changes in Industrial Producer Prices** Month-on-month, producer prices for means of production increased 0.1%, pushing the overall PPI up by 0.08 percentage points. Mining industry prices rose 1.7%, while raw material prices dipped 0.2%, and processing industry prices edged up 0.1%. Consumer goods prices remained flat, with food prices down 0.1%, clothing prices up 0.1%, general daily necessities up 0.2%, and durable consumer goods down 0.2%.
Purchasing prices for non-ferrous metals and wires climbed 1.8%, building materials and non-metallics rose 0.2%, and fuel and power prices increased 0.1%. Meanwhile, chemical raw materials fell 0.6%, agricultural and sideline products and textile materials both declined 0.3%, and ferrous metals dropped 0.2%.
Dong Lijuan, chief statistician at the National Bureau of Statistics, noted that while the PPI continued its sequential rise, the year-on-year decline widened slightly.
Dong explained that the PPI rose 0.1% month-on-month, marking two consecutive months of growth. Key drivers included: 1. **Seasonal demand increases**—As regions entered peak winter energy consumption, demand for coal and gas rose seasonally. Coal mining and washing prices rose 4.1%, coal processing prices climbed 3.4%, and gas production and supply prices increased 0.7%. Winter also boosted demand for cold-weather products, with wool fabric processing prices up 0.6% and down product processing prices up 0.2%. 2. **Diverging price trends in non-ferrous metals and petroleum sectors**—Higher global non-ferrous metal prices lifted domestic non-ferrous mining prices by 2.6% and smelting/processing prices by 2.1%, with copper, gold, and aluminum smelting up 2.9%, 1.4%, and 0.2%, respectively. Conversely, falling international oil prices led to a 2.4% drop in domestic oil and gas extraction prices and a 2.2% decline in refined petroleum product prices.
The 2.2% year-on-year PPI decline—0.1 percentage points wider than October—was mainly due to a higher comparison base from 2022. However, macroeconomic policies have shown positive effects, with notable price improvements: - **Tighter industry competition regulation** narrowed year-on-year price declines in coal mining (3.8 percentage points), photovoltaic equipment (2.0 percentage points), and lithium-ion battery manufacturing (0.7 percentage points). New energy vehicle manufacturing price declines also eased by 0.6 percentage points. - **Emerging industries drove price gains**—Demand from new materials and AI sectors boosted prices for external storage devices (up 13.9%), graphite products (up 3.8%), integrated circuits (up 1.7%), service robots (up 1.1%), and waste recycling (up 0.4%). - **Consumer demand recovery** lifted prices for arts/crafts (up 20.6%), sports balls (up 4.3%), and nutritional foods (up 1.1%), while narrowing declines in home appliances like washing machines, TVs, and air conditioners.
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