The National Bureau of Statistics has released the Consumer Price Index (CPI) and Producer Price Index (PPI) data for May 2026.
According to a senior statistician from the bureau, the consumer market operated with overall stability during the month. The CPI edged down 0.1% month-on-month and rose 1.2% year-on-year. The core CPI, which excludes food and energy prices, increased 1.1% from a year earlier.
Meanwhile, the PPI, influenced by factors including increased demand in certain domestic sectors and the transmission of international commodity price fluctuations, rose 0.5% month-on-month and 3.9% year-on-year.
Consumer Price Index Shows Stability
Nationally, the CPI declined 0.1% on a monthly basis, a shift from the 0.3% increase recorded in April. This change was primarily driven by movements in energy and service prices.
Transmission from international oil prices led domestic gasoline prices to fall 0.3% in May, reversing a 12.6% gain the previous month. This contributed to energy prices dropping 0.1%, after a 5.7% rise in April. Consequently, the impact of energy on the monthly CPI shifted from adding 0.39 percentage points in April to subtracting 0.01 percentage points in May.
Following a seasonal decline in travel after the May Day holiday, service prices fell 0.1%, compared to a 0.5% increase in April. Their effect on the monthly CPI changed from adding 0.22 percentage points to subtracting 0.03 percentage points. Specifically, prices for vehicle rentals and air tickets fell 6.8% and 6.3% respectively, after rising 8.6% and 29.2% in April, jointly pulling down the monthly CPI by approximately 0.04 percentage points.
The launch of new summer clothing collections pushed apparel prices up 0.6%. Robust demand related to artificial intelligence drove prices for mobile phones and tablets up 1.6% and 1.1% respectively. These three items together contributed to a monthly CPI increase of about 0.05 percentage points.
Food prices dropped 0.4%, with the rate of decline narrowing by 1.2 percentage points from April, dragging down the monthly CPI by roughly 0.07 percentage points. Within the food category, a plentiful supply of seasonal vegetables led to a 3.6% drop in fresh vegetable prices, impacting the monthly CPI by about -0.06 percentage points. Ample pork supply caused prices to fall 1.6%, though the decline narrowed by 4.1 percentage points from the prior month, affecting the monthly CPI by approximately -0.03 percentage points. Conversely, egg prices surged 6.1% due to factors including a temporary tight supply, reduced laying rates in summer heat, and concentrated pre-festival purchases for the Dragon Boat Festival, pushing up the monthly CPI by about 0.03 percentage points.
Year-on-year, the national CPI rose 1.2%, maintaining the same growth rate as April. Prices for industrial consumer goods increased 3.9%, accelerating by 0.4 percentage points from April and contributing about 1.18 percentage points to the annual CPI increase. Among these, gasoline prices, influenced by a low comparison base from the same period last year, continued to see an expanding increase, rising 23.5% and contributing about 0.66 percentage points. The increase in gold jewelry prices moderated further to 39.0%, contributing about 0.17 percentage points. Prices for household appliances and apparel rose 3.4% and 1.5% respectively, together contributing approximately 0.12 percentage points.
Service prices increased 0.8%, with the growth rate slowing by 0.1 percentage point from April, contributing about 0.40 percentage points. Within services, travel-related service prices rose 2.8%, though the pace of increase slowed by 0.9 percentage points. Prices for other services remained generally stable.
Food prices fell 1.7% year-on-year, with the decline widening by 0.1 percentage point, pulling down the annual CPI by about 0.30 percentage points. Pork prices dropped 16.1%, with the decline widening by 0.9 percentage points, contributing about -0.31 percentage points. Fresh fruit prices fell 2.2%, contributing about -0.04 percentage points. Prices for eggs, mutton, beef, poultry, aquatic products, and fresh vegetables all increased, with gains ranging from 0.6% to 8.4%, jointly contributing about 0.13 percentage points to the annual CPI increase.
Producer Price Index Maintains Upward Trend
On a monthly basis, the national PPI increased 0.5%, though the growth rate moderated by 1.2 percentage points from April.
The main characteristics of the PPI's monthly movement were as follows. First, industrial restructuring and upgrading drove price increases in certain sectors. Ongoing equipment renewal in manufacturing pushed prices in the smelting and pressing of ferrous metals up 1.2%. Accelerated electrification, deep integration of AI across sectors, and growing computing demand contributed to price rises in non-ferrous metals, electrical machinery, and computer-related industries. Prices for the smelting and pressing of non-ferrous metals increased 1.1%, with tin smelting and copper smelting prices rising 4.8% and 3.1% respectively. Prices for the manufacture of computers, communication, and other electronic equipment rose 0.6%, with prices for integrated circuit packaging and testing series, and external storage devices and components increasing 2.9% and 1.9% respectively. Prices for the manufacture of electrical machinery and apparatus rose 0.5%, with prices for optical fiber manufacturing and wire and cable manufacturing up 8.0% and 1.2% respectively.
Second, seasonal demand increases boosted prices in some industries. Preparations for peak summer electricity demand and rising coal consumption for non-power uses led to a 3.2% monthly price increase in coal mining and washing. As temperatures rose in May, prices for the manufacture of household air conditioners and household refrigeration appliances increased 0.9% and 0.3% respectively, while power supply prices rose 0.4%.
Third, the transmission of volatile international crude oil prices caused prices in related domestic industries to shift from increase to decline or see slower growth. Prices for petroleum extraction fell 1.8% month-on-month, reversing a 24.1% increase in April. Prices for refined petroleum product manufacturing dropped 0.3%, after a 19.0% gain the previous month. Prices for the manufacture of raw chemical materials and chemical products, chemical fibers, and rubber and plastic products rose 2.0%, 1.5%, and 1.5% respectively, but the increases slowed by 6.3, 4.1, and 0.2 percentage points from April.
Year-on-year, the national PPI rose 3.9%, accelerating by 1.1 percentage points from April. Among industries with price increases, mining and processing of non-ferrous metal ores surged 36.5%, smelting and pressing of non-ferrous metals rose 24.0%, coal mining and washing increased 10.0%, manufacture of electrical machinery and apparatus rose 4.5%, manufacture of computers, communication, and other electronic equipment increased 2.1%, and smelting and pressing of ferrous metals rose 1.0%. These six sectors together contributed about 2.56 percentage points to the annual PPI increase, with their upward pull effect strengthening by 0.51 percentage points from April.
Additionally, extraction of petroleum and natural gas, processing of petroleum, coal and other fuels, and manufacture of raw chemical materials and chemical products rose 35.7%, 18.4%, and 12.7% respectively, jointly contributing about 1.96 percentage points to the annual PPI increase, with their upward effect strengthening by 0.46 percentage points.
Among industries with price declines, manufacture of non-metallic mineral products fell 5.1%, production and supply of electric power and heat power dropped 4.4%, manufacture of automobiles decreased 2.0%, and processing of farm and sideline food products declined 1.4%. These four sectors together contributed about a 0.75 percentage point decline in the annual PPI, with their downward pull effect increasing by 0.01 percentage points from April.
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