China’s CPI Up 2.7%, PPI Up 0.6% In May

China’s consumer price index (CPI) rose 2.7 percent year-on-year in May and the producer price index (PPI) increased 0.6 percent from a year ago, the National Bureau of Statistics (NBS) showed Wednesday.

 

Food prices gained 7.7 percent year-on-year in May, contributing 1.48 percentage points of the overall CPI’s year-on-year growth. Non-food prices gained 1.6 percent, adding 1.26 percentage points to the overall CPI figure, NBS data showed.

 

The increase in food prices is mainly due to higher prices of fruit and vegetables which are in short supply, said NBS official Dong Yaxiu.

 

China’s Ministry of Commerce (MOFCOM) said last month that fruit and vegetable prices were expected to fall thanks to increasing supplies in the market.

 

NBS data showed factory prices of production materials grew 0.9 percent year-on-year in May, down 0.6 percentage points from a month earlier.

 

 

Among major industries, oil and natural gas mining, non-metallic mineral products and oil, coal and fuel processing industries saw slower price rises in May compared to the previous year, according to the NBS.

 

On a monthly basis, the CPI remains flat, compared with a 0.1-percent increase last month, and the PPI rose 0.2 percent, the NBS said.

 

The CPI is a main gauge that examines the weighted average of prices of a basket of consumer goods and services, while the PPI measures costs for goods at the factory gate.

 

Source: CGTN