NBS: China's May CPI gains 0.3%, PPI loses 1.4% YoY

China's Consumer Price Index (CPI) went up by 0.3% on year but dipped 0.1% on month in May, while the country's Producer Price Index (PPI) slipped by 1.4% on year but rose 0.2% on month, according to new data released by the country's National Bureau of Statistics (NBS) on Wednesday morning.

The on-month drop in the country's CPI was mainly caused by the decline in tourism-related prices, as people's travel activities decreased significantly after the national Labor Day holiday over May 1-5, according to Dong Lijuan, a senior statistician with NBS.

China CPI

Last month, Chinese prices for air tickets, vehicle rental, and bus tickets fell by 9.4%, 7.9%, and 2.7% respectively from those in April, NBS data showed.

On the other hand, domestic food prices stood unchanged on month in May, though they decreased by 2% on a yearly basis, according to NBS data.

The prices of fresh fruits, eggs, and pork all increased on month supported by the tight availability in the market, while the prices of shrimp and crab, beef, and fresh vegetables lost ground from the previous month due to their ample supply, Dong explained.

Excluding food and energy, China's core inflation slid 0.2% on month but rose by 0.6% on year in May, the data showed.

As for China's PPI, it posted a positive on-month gain after falling continuously during the previous six months, and its on-year decline narrowed thanks to the rebound of domestic industrial product prices as well as the improved fundamentals of industry markets, according to Dong.

China PPI

For example, China's steelmaking and fabrication industry saw its ex-work prices edge up 0.8% on month, buoyed by the economic stimulus policies issued by the central government, though compared with the same period last year, the prices slid 3.7%, NBS data showed.

Meanwhile, the prices in the coal mining and processing industry went up 0.5% as domestic demand for thermal coal expanded with the traditional summer peak of electricity consumption approaching. On a yearly basis, however, the prices dropped 9%, according to the data.

Over January-May, China's CPI nudged up 0.1% on year, while the country's PPI lost 2.4% from the same period last year, according to NBS statistics.

Written by Anthea Shi, shihui@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com