Posted on 13 May 2024
China's Consumer Price Index (CPI) increased by 0.3% on year and picked up 0.1% on month in April, while the country's Producer Price Index (PPI) fell 2.5% on year and dipped 0.2% on month, according to new data released by the country's National Bureau of Statistics (NBS) on May 11.
The positive gain in China's CPI last month was a marked improvement from the on-month drop recorded in March and was spurred mainly by people's increased travel activities before the national Labor Day holiday over May 1-5, according to Dong Lijuan, a senior statistician with the NBS.
For example, in April domestic prices for air tickets, vehicle rental, and hotel accommodation rose by 15.3%, 9%, and 4% on month respectively, the NBS data showed.
However, food prices in April dropped further by 1% on month and lost 2.7% on year – softened by ample supplies of food products in the domestic market – which continued weighing on the CPI last month, Dong noted.
Specifically, the prices of eggs and fresh fruit fell 2.3% and 2% on month respectively, while on a yearly basis they declined 12.4% and 9.7%, according to the NBS data.
Excluding food and energy, China's core inflation edged up 0.2% on month and increased 0.7% on year in April, the data showed.
On the other hand, China's PPI stayed on a downward tack, according to Dong, dragged lower by retreating demand in some industries.
For instance, prices in the coal mining and processing industry slid 3% on month and slumped 14.2% on year, as thermal coal demand for domestic heating shrank significantly with the rise in temperatures across the country.
Meanwhile, China's steelmaking and fabrication industry saw its ex-works prices drop 2.5% on month and decrease 8.5% on year in April, with finished steel supply expanding at a faster pace last month, the NBS data showed.
Over January-April, China's CPI nudged up 0.1% on year overall, while the PPI dropped 2.7% compared with the same period last year, according to NBS statistics.
Source:Mysteel Global
