On May 11, Dong Lijuan, Chief Statistician of the Department of Urban Surveys at the National Bureau of Statistics, provided an analysis of the April 2026 Consumer Price Index (CPI) and Producer Price Index (PPI) data. In April, influenced by fluctuations in international crude oil prices and increased holiday travel demand, the CPI rose by 0.3% month-on-month and 1.2% year-on-year. The core CPI, which excludes food and energy prices, increased by 1.2% year-on-year, indicating a mild recovery. Driven by rapid increases in international commodity prices, rising demand in certain domestic industries, and ongoing optimization of market competition, the PPI rose by 1.7% month-on-month and 2.8% year-on-year, with both growth rates accelerating compared to the previous month.
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**April 2026 CPI Shows Mild Recovery; PPI Growth Accelerates – Analysis of April 2026 CPI and PPI Data by Dong Lijuan, Chief Statistician of the Department of Urban Surveys at the National Bureau of Statistics**
In April, influenced by fluctuations in international crude oil prices and increased holiday travel demand, the CPI rose by 0.3% month-on-month and 1.2% year-on-year. The core CPI, which excludes food and energy prices, increased by 1.2% year-on-year, indicating a mild recovery. Driven by rapid increases in international commodity prices, rising demand in certain domestic industries, and ongoing optimization of market competition, the PPI rose by 1.7% month-on-month and 2.8% year-on-year, with both growth rates accelerating compared to the previous month.
**I. Mild Recovery in CPI**
On a month-on-month basis, the national CPI shifted from a 0.7% decline in the previous month to a 0.3% increase in April, 0.4 percentage points above seasonal levels, primarily due to rising energy and travel service prices. Influenced by international crude oil price volatility, domestic energy prices rose by 5.7%, with the growth rate expanding by 0.9 percentage points from the previous month, contributing approximately 0.39 percentage points to the month-on-month CPI increase. Among these, gasoline prices rose by 12.6%. Service prices shifted from a 1.1% decline in the previous month to a 0.5% increase, 0.2 percentage points above seasonal levels, contributing approximately 0.22 percentage points to the month-on-month CPI increase. Specifically, due to increased demand during the Qingming Festival, May Day holiday, and spring breaks in some regions, prices for air tickets, vehicle rentals, travel agency fees, and hotel accommodations rose by 29.2%, 8.6%, 4.5%, and 3.9%, respectively. All these increases were above seasonal levels, collectively contributing approximately 0.17 percentage points to the month-on-month CPI increase. Medical service prices rose by 0.6%, contributing approximately 0.04 percentage points to the month-on-month CPI increase. Food prices fell by 1.6%, with the decline narrowing by 1.1 percentage points from the previous month, dragging down the month-on-month CPI by approximately 0.28 percentage points. Among food items, as the weather warmed, fresh vegetables and fruits became more abundant, leading to price declines of 6.4% and 2.3%, respectively. Pork and aquatic products remained well-supplied, with prices falling by 5.7% and 1.2%, respectively. These four categories collectively contributed approximately 0.28 percentage points to the month-on-month CPI decline. Egg prices rose by 3.4%, contributing approximately 0.01 percentage points to the month-on-month CPI increase. Prices of industrial consumer goods excluding energy fell by 0.2%, remaining largely stable.
On a year-on-year basis, the national CPI rose by 1.2%, with the growth rate expanding by 0.2 percentage points from the previous month. Industrial consumer goods prices increased by 3.5%, with the growth rate expanding by 1.3 percentage points from the previous month, contributing approximately 1.06 percentage points to the year-on-year CPI increase. Among industrial consumer goods, influenced by international commodity price fluctuations, domestic gasoline and gold jewelry prices showed significant changes. Gasoline prices rose by 19.3%, contributing approximately 0.56 percentage points to the year-on-year CPI increase. Gold jewelry price growth moderated to 46.9%, contributing approximately 0.20 percentage points to the year-on-year CPI increase. Prices for household appliances and clothing rose by 2.6% and 1.6%, respectively, collectively contributing approximately 0.11 percentage points to the year-on-year CPI increase. Service prices rose by 0.9%, with the growth rate expanding by 0.1 percentage points from the previous month, contributing approximately 0.44 percentage points to the year-on-year CPI increase. Among services, prices for basic public services remained generally stable, with medical and education service prices rising by 3.4% and 0.5%, respectively, collectively contributing approximately 0.25 percentage points to the year-on-year CPI increase. Travel service price growth expanded, rising by 3.7% in April and contributing approximately 0.13 percentage points to the year-on-year CPI increase. Prices for labor-intensive services saw slight increases, with pet services, dining out, household services, and vehicle repair and maintenance prices rising between 1.1% and 1.4%. These four categories collectively contributed approximately 0.10 percentage points to the year-on-year CPI increase. Food prices shifted from a 0.3% increase in the previous month to a 1.6% decline in April. Among food items, pork prices fell by 15.2%, with the decline expanding by 3.7 percentage points from the previous month, dragging down the year-on-year CPI by approximately 0.29 percentage points. Fresh vegetable and fruit prices fell by 0.5% and 1.0%, respectively. Prices for beef, lamb, aquatic products, and eggs all rose, with increases ranging between 1.0% and 6.2%.
**II. Accelerated Growth in PPI**
On a month-on-month basis, the national PPI rose by 1.7%, with the growth rate expanding by 0.7 percentage points from the previous month. The main characteristics of the month-on-month PPI movement in April were as follows: First, international input factors drove up prices in domestic petroleum-related industries. Rising international crude oil prices led to higher prices in domestic petroleum-related sectors. Specifically, prices in the extraction of petroleum and natural gas rose by 18.5% month-on-month; processing of petroleum, coal, and other fuels rose by 16.4%; manufacturing of raw chemical materials and chemical products rose by 8.3%; manufacturing of chemical fibers rose by 5.6%; and manufacturing of rubber and plastic products rose by 1.7%. Second, increased demand in certain domestic industries contributed to price increases. Rapid growth in computing power demand and accelerated electrification processes drove month-on-month price increases of 22.5% in optical fiber manufacturing, 3.2% in external storage devices and components, and 0.2% in smelting and pressing of non-ferrous metals. The release of demand for thermal coal inventory replenishment, coupled with increased non-power coal demand from chemical and metallurgical industries, led to a 1.9% month-on-month increase in coal mining and washing prices. Ongoing progress in manufacturing equipment renewal drove increased steel demand, resulting in a 0.6% month-on-month increase in smelting and pressing of ferrous metals. Third, continuous optimization of domestic market competition led to price increases or narrower declines in related industries. Continued effectiveness in curbing "involution-style" competition was evident, with month-on-month price increases of 1.6% in lithium-ion battery manufacturing. Prices for new energy vehicle manufacturing fell by 0.1%, with the decline narrowing by 0.7 percentage points from the previous month.
On a year-on-year basis, the national PPI rose by 2.8%, with the growth rate expanding by 2.3 percentage points from the previous month. Among the major industries with price increases, mining and processing of non-ferrous metal ores rose by 38.9%, and smelting and pressing of non-ferrous metals rose by 22.5%, collectively contributing approximately 1.58 percentage points to the year-on-year PPI increase. Extraction of petroleum and natural gas rose by 28.6%, processing of petroleum, coal, and other fuels rose by 14.2%, and manufacturing of raw chemical materials and chemical products rose by 8.9%, collectively contributing approximately 1.50 percentage points to the year-on-year PPI increase. Manufacturing of electrical machinery and equipment rose by 3.6%, and manufacturing of computers, communication equipment, and other electronic devices rose by 1.5%, collectively contributing approximately 0.46 percentage points to the year-on-year PPI increase. Among the major industries with price declines, manufacturing of non-metallic mineral products fell by 5.5%, production and supply of electric power and heat power fell by 4.2%, manufacturing of automobiles fell by 2.0%, and smelting and pressing of ferrous metals fell by 1.1%, collectively dragging down the year-on-year PPI by approximately 0.75 percentage points.
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