Chinese producer prices take biggest year-on-year fall since 2023
Make us a preferred source
Make us a preferred source on Google
The news: China’s producer price index fell by its largest year-on-year margin in June as deflationary and tariff pressures persist, although consumer prices lifted contrary to market expectations.
The numbers: China’s producer price index (PPI) fell 3.6% in June on a year-on-year basis, outpacing the 3.3% decline in May and representing the biggest fall since July 2023. On a monthly basis the June PPI fell 0.4%, following the same size decline as in May.
The consumer price index (CPI) lifted by 0.1% on a year-on-year basis, the first increase in five years. On a monthly basis the June CPI fell 0.1%, which was a smaller decline than the 0.2% fall in May.
The context: The chief statistician of the National Bureau of Statistics of China’s Urban Department Dong Lijuan said the monthly PPI decline was partly driven by disruptions on some construction projects due to high temperatures and rainy weather and a slowdown in global trade growth.
The increase in year-on-year CPI was partly driven by an increase in the price of industrial consumer goods amid Chinese government plans to improve domestic demand, such as through the creation of a unified national market to boost demand by breaking down internal barriers to trade.
The sources: National Bureau of Statistics of China, Bloomberg, Reuters
