Posted on 12 Jul 2022
For June, China's Consumer Price Index (CPI) increased by 2.5% on year and reversed the on-month decline of 0.2% in May to stay flat, while its Producer Price Index (PPI) rose by 6.1% on year and reversed the on-month growth of 0.1% last month to remain unchanged too, according to the latest data released by the country's National Bureau of Statistics (NBS) on July 9.
Last month, the pandemic situation in China had eased steadily with the country's effective COVID containment measures, and the national supply of necessity goods was sufficient, both of which contributed to the moderate growth of CPI, noted Dong Lijuan, a senior statistician with the NBS.
Among the key CPI elements, food prices fell by 1.6% on a monthly basis but rose 2.9% on year in June, with pork prices growing 2.9% on month though they were still 6% lower on year.
The on-month increase in pork prices was mainly because some pig farmers held back for sales, and due to growing demand from consumers amid the eased pandemic situation, according to Dong.
On the other hand, Chinese prices of fresh fruits, vegetables and eggs all declined on month because of the recovery in logistics services and the easing in pent-up demand, Dong added.
Regarding the PPI, the on-year increase of 6.1% last month was slower compared with that in May, as Chinese producers had steadily resumed their operations.
Chinese steelmaking and fabrication sector saw its ex-works prices fall by 3.1% on month and 3.7% on year, since demand for steel from end-users had weakened last month. The ex-works prices of China's non-ferrous metals manufacturing and processing industry also dropped by 2.1% on month, though they were still up 8.2% on year.
Meanwhile, the prices in Chinese coal mining and processing sector edged up by 0.8% on month and gained 31.4% on year in June, as stocking demand for coal increased with the high season for power consumption in summer approaching.
Besides, Chinese prices in the oil and natural gas drilling sector grew more significantly by 7% on month, or surging 54.4% on year amid rising crude oil prices globally. The prices in the oil, coal and other fuels processing sector also gained 3.6% on month and 34.7% on year.
Over January-June, China's CPI grew 1.7% on year, while the PPI rose 7.7% on year, according to the NBS statistics.
Source:Mysteel Global
