China's Prices Still Stable... May CPI Up 2.1% (Comprehensive)

International Oil Prices Rise Sharply, Gasoline and Others Increase Significantly
PPI Up 6.4%, Declining Since October Last Year but Still High

[Asia Economy Beijing=Special Correspondent Jo Young-shin] Last month, China's consumer price inflation rate recorded 2.1%. Although concerns were raised that consumer prices in May could rise further due to the normalization of pork prices, the rate remained at the same level as the previous month.

Source: National Bureau of Statistics of China

China's National Bureau of Statistics announced on the 10th that the Consumer Price Index (CPI) for May rose 2.1% compared to the same month last year. This is the same rate as the increase in April. In April, China's consumer prices re-entered the 2% range for the first time in five months due to rising international raw material prices caused by the Russia-Ukraine war and lockdowns in major cities such as Shanghai.

Some food items such as fruits and fresh vegetables, as well as automobile fuel, stimulated prices, resulting in a 2% increase for two consecutive months.

In fact, the price increases were significant for fruits (19%), fresh vegetables (11.6%), eggs (10.6%), and cooking oil (3.8%).

The price of pork, which has a significant impact on China's consumer prices, fell 21.1% compared to the same month last year, slowing the overall rise in consumer prices. However, as the decline in pork prices is narrowing, the normalization of prices is expected to have a considerable impact on China's consumer prices.

Also, due to the rise in international oil prices, automobile fuel costs soared by 27.1%. By fuel type, gasoline and diesel rose 27.6% and 30.1%, respectively, and LPG prices also surged by 26.9%.

Source: National Bureau of Statistics of China

China's Producer Price Index (PPI), which affects international industrial goods prices, remained relatively high last month but showed signs of a slowdown in the upward trend. The PPI for May rose 6.4% compared to the same month last year. Although it has been declining monthly since peaking at 13.5% in October last year, it is still considered high.

The PPI also showed high levels in industries closely linked to international oil prices. Fuel and power prices surged by a whopping 31.6% compared to the same month last year, and the purchase price of chemical raw materials rose 10.5%.

This content was produced with the assistance of AI translation services.