China News Agency, Beijing, June 10 (Reporter Wang Enbo) The National Bureau of Statistics of China released data on the 10th. In May, China's industrial producer price (PPI) fell by 3.7% year-on-year, an increase of 0.6 percentage points from the previous month. On average from January to May, China's PPI fell by 1.7% over the same period last year.
Data map: employees work in the production workshop. China News Service reporter Lu Pinshe
Talking about the reasons for the decline in PPI that month, Wen Bin, chief researcher of China Minsheng Bank, said that from an internal perspective, the epidemic caused a major impact on business operations and insufficient effective demand, which had a certain impact on production prices. From an external perspective, oil prices continued to be low The shock has a big impact on production prices.
Specifically, from a year-on-year perspective, affected by a slightly higher comparison base last year, the decline in PPI in May expanded from last month. Among them, the prices of means of production fell by 5.1%, an increase of 0.6 percentage points; the prices of means of living rose by 0.5%, an increase of 0.4 percentage points. The price drop in major industries has expanded.
According to official estimates, in the 3.7% year-on-year decline in PPI in May, the tailing effect of price changes last year was about -0.5 percentage points, and the effect of new price increases was about -3.2 percentage points.
From a chain perspective, in May, PPI fell by 0.4%, a decrease of 0.9 percentage points from the previous month. Among them, the prices of means of production fell by 0.5%, narrowing by 1.3 percentage points; the prices of means of living fell by 0.3%, and the decline increased by 0.2 percentage points. Judging from the 40 major industrial categories surveyed, there were 20 prices that decreased by 10, 10 prices that increased by 2 and 10 that were flat, which increased by 8.
Affected by changes in international crude oil prices, the price decline in oil-related industries has narrowed. Among them, the price of the oil and gas extraction industry fell by 9.1%, narrowing by 26.6 percentage points; the price of oil, coal and other fuel processing industries fell by 4.0%, narrowing by 5.0 percentage points; the price of chemical raw materials and chemical products manufacturing industry fell by 1.2%, closing 1.8% narrower. The total impact of the above three industries on PPI fell by about 0.24 percentage points, a decrease of 0.52 percentage points from the previous month.
Regarding the follow-up trend, Zhu Jianfang, chief economist of CITIC Securities, said that according to the judgment of his institution on the fundamentals of the Chinese economy, the PPI will bottom out in May. Subsequent to the continued rebound in international oil prices and the continued strong influence of domestic terminal demand, It is expected to open the recovery channel. Zhang Wenlang, chief macro analyst of Everbright Securities, also believes that as the high base in the second half of the year recedes and the post-epidemic recovery at home and abroad advances, China's PPI deflation may narrow. (Finish)