According to the latest figures released by the National Bureau of Statistics on May 11, China's Consumer Price Index (CPI) increased by 1.2% year-on-year in April. The average CPI for the period from January to April rose by 0.9% compared to the same period last year. Meanwhile, the Producer Price Index (PPI) for industrial products saw a year-on-year increase of 2.8% in April, with a month-on-month rise of 1.7%. Contrary to market expectations, pork prices did not show an upward trend. In April, food prices contributed to a month-on-month decline in CPI of approximately 0.28 percentage points, while energy and service prices both rose, driving the month-on-month CPI increase by about 0.39 and 0.22 percentage points, respectively. The rise in energy prices reflects the impact of fluctuations in international oil prices, while the increase in service prices indicates a further recovery in economic activity. Regarding PPI, the non-ferrous metal mining and processing sectors collectively contributed to a year-on-year PPI increase of about 1.58 percentage points in April. The energy extraction and processing, as well as chemical raw materials industries, also contributed to the year-on-year rise in PPI. The current uptick in the manufacturing sector's performance has led to robust demand for upstream raw materials, driving sustained price increases for related products. The simultaneous rise in both CPI and PPI, even after excluding the impact of rising international oil prices, highlights a clear endogenous uptrend, signaling a further enhancement of economic vitality. The Chinese economy continues to demonstrate strong and unique resilience.
Comments