Posted on 13 Sep 2022
For August, China's Consumer Price Index (CPI) rose for 2.5% on year but fell 0.1% on month, while its Producer Price Index (PPI) rose 2.3% on year yet dropped 1.2% on month, according to the latest data released by the country's National Bureau of Statistics (NBS) on Friday morning. The on-year increase of both indices narrowed from that in July, the NBS data showed.
Despite the resurgence of COVID cases and extreme temperatures across the country, China's consumer market went smoothly in general last month, as national policies to stabilize the supply of commodities took effect, noted Dong Lijuan, a senior statistician with the NBS.
Among key CPI elements, food prices edged up 0.5% on month and rose 6.1% on year, with pork prices up 0.4% on month and 22.4% on year.
The on-month rise in pork prices retreated significantly from July's 25.6%, mainly because pig farmers no longer held back for sales in August, while demand also weakened in the low season for pork consumption, Dong explained.
Meanwhile, Chinese prices of fresh vegetables gained 2% on month and 6% on year in August, both of which were milder than July because the supply of vegetables grew in North China, Dong added.
The NBS data also showed that China's prices of eggs and fresh fruits both fluctuated within a normal range last month, with the former up 3.5% on month and the latter down 1% on month.
Regarding PPI in August, its on-year rise continued to slow down due to the softening of global commodity prices, the stable supply of major commodities such as coal, and lackluster demand in certain Chinese industrial sectors including steelmaking.
For example, China's steelmaking and fabrication sector saw its ex-works prices fall 4.1% on month and 15.1% on year, and those of non-ferrous metals manufacturing and processing industry also went down 2% on month and 1.5% on year.
"The decline in prices of steel and non-ferrous metals helped ease the cost pressure among midstream and downstream users to some extent," Dong said.
In terms of raw materials, prices in China's coal mining and processing sector fell 4.3% on month but were 8.6% higher on year, the oil and natural gas drilling sector saw prices drop 7.3% on month but soar 35% on year, and those in oil, coal and other fuels processing industry lost 4.8% on month but surged 21.3% on year.
Over January-August, China's CPI went up 1.9% on year, while PPI gained 6.6% on year, according to NBS' latest statistics.
Source:Mysteel Global
