China inflation: factory-gate prices remain high but fall slightly as global commodity prices level off
- China’s official producer price index (PPI) rose by 8.8 per cent in June from a year earlier, compared with 9 per cent in May
- The consumer price index (CPI) rose by 1.1 per cent from a year earlier, compared with a 1.3 per cent rise in May
Factory-gate price inflation in China remained high in June, data released on Friday showed, falling slightly from the near 13-year high a month earlier.
This was in line with expectations, as a Bloomberg survey of analysts had predicted a rise of 8.8 per cent, and was largely attributed to a levelling off in global commodity prices.
“The effect of ensuring the commodity supply and stabilising the price began to emerge in June, the supply-demand relations tended to improve and the price increase of industrial products slowed down to a certain degree,” said senior NBS statistician Dong Lijuan.
After reaching a 12-year high in May, producer price inflation dropped back in June as the rally in global commodity prices faltered
China’s official consumer price index (CPI), meanwhile, rose by 1.1 per cent in June from a year earlier, down from 1.3 per cent in May, the NBS said.
This was just below the Bloomberg survey median, which had predicted a 1.2 per cent rise. The decline was largely due to a return to food price deflation as pork prices fell 13.6 per cent month on month thanks to a strong recent rebound in pig stocks.