China News Service, Beijing, January 11 (Reporter Wang Enbo) The National Bureau of Statistics of China announced on the 11th that in December 2020, China’s industrial producer price index (PPI) fell by 0.4% year-on-year, and the rate of decline narrowed by 1.1 percentage points from the previous month. .
For the entire year of 2020, China's PPI will drop 1.8% from the previous year.
Talking about the reasons for the continuous improvement of China’s PPI, Wen Bin, chief researcher of China Minsheng Bank, analyzed that on the one hand, international commodity prices continued to rise in December, and oil prices also rebounded significantly; on the other hand, China’s domestic economy continued to recover and demand rebounded. Drive the recovery of ex-factory prices and contribute to PPI.
Officially disclosed data also reflects the above trend.
From a year-on-year perspective, in the December PPI, the price of means of production fell by 0.5%, and the rate of decline narrowed by 1.3 percentage points; the price of means of living fell by 0.4%, and the rate of decline narrowed by 0.4 percentage points.
Among the major industries, the non-ferrous metal smelting and rolling processing industry, whose price increases increased by 8.3%, increased by 4.2%; the ferrous metal smelting and rolling processing industry, increased by 5.0%, or 3.0%.
The oil and natural gas mining industry, which decreased by 27.0%, decreased by 2.8 percentage points; the oil, coal and other fuel processing industries, decreased by 12.5%, or 3.8 percentage points.
From a month-on-month perspective, in December, PPI rose by 1.1%, an increase of 0.6 percentage points from the previous month.
Among them, the price of means of production rose by 1.4%, an increase of 0.7 percentage points; the price of means of living rose by 0.1%, the same as the previous month.
Among the major industries, the prices of oil and natural gas extraction, oil, coal and other fuel processing industries, and the prices of chemical raw materials and chemical products manufacturing all increased due to factors such as the rise in international crude oil prices, and the total PPI increased by about 0.37. Percentage points.
As the temperature at the end of the year was lower than that of the same period of normal years, the demand for heating increased rapidly, which led to an increase in the price of gas production and supply, and the price of coal mining and washing.
Looking forward to the follow-up trend, Wen Bin pointed out that the current PPI decline has narrowed sharply and is about to turn positive, which is basically in line with the expected direction.
As China's economy continues to recover, business confidence and operations are gradually improving, effective demand is further enhanced, oil prices are likely to rebound, and PPI will gradually be repaired, and it is expected to turn positive within the year.