Posted on 11 Jul 2023
China's Consumer Price Index (CPI) stood unchanged on year but dropped 0.2% on month in June, while the country's Producer Price Index (PPI) posted a faster on-year drop of 5.4% and lost 0.8% on month, according to the latest data released by the country's National Bureau of Statistics (NBS) on Monday morning.
The country's CPI registered the fifth straight on-month drop in May as the prices of food and energy generally went downward, noted Dong Lijuan, a senior statistician with the NBS. Core inflation that excludes food and energy also dipped 0.1% on month, though it climbed 0.4% on a yearly basis, NBS data showed.
China's energy prices dropped at a faster pace of 0.7% on month and 9.3% on year in June due to the decline of global oil prices, according NBS data. Prices of industrial consumer goods excluding energy also dipped 0.3% on month and 0.5% on year, impacted by businesses' various discount promotions for the 618 Shopping Festival that ran from late May until June 18, Dong observed.
Meanwhile, domestic food prices were dragged lower overall by the ample supply last month, with pork prices falling 1.3% on month and 7.2% on year, while the prices of egg and fresh fruits losing 2.2% and 1.7% on month respectively, NBS data showed.
Nevertheless, the prices of fresh vegetables went up 2.3% on month and gained 10.8% on year in June because the high temperatures and intensive monsoon rains lifted the costs of vegetable transport and preservation, according to Dong.
Regarding China's PPI in June, it posted the third on-month drop and slid at a faster pace on year, dragged by the weakening prices of oil and coal globally, Dong noted.
For example, the prices in China's coal mining and processing industry lost 6.4% on month and fell 19.3% on year, while those in the oil and natural gas producing sector slid 1.6% on month and slumped 25.6% on year, NBS data showed. The prices in the oil, coal and other fuels processing industry also decreased 2.6% on month and 20.1% on year respectively last month.
China's steelmaking and fabrication sector saw its ex-work prices decline 2.2% on month and fall 16% on year due to the growing steel supply in the country, while those in the non-ferrous metals manufacturing and processing industry also fell 0.8% and 7.2% respectively, according to NBS data.
Over January-June, China's on-year CPI growth continued slowing down to 0.7%, while the PPI slid 3.1% on year, according to NBS statistics.
Source:Mysteel Global
