China Inflation Rate at 4-Month Low in May
Consumer prices in China rose 2.0 percent year-on-year in May of 2016, slowing from a 2.3 percent rise in the previous three months and below market consensus. The politically sensitive food prices increased by 5.9 percent while non-food cost rose at a slower 1.1 percent. Cost of consumer goods gained 2.0 percent and those of services advanced 2.1 percent.
6/9/2016 4:24:11 AM
Among food, prices rose at a slower pace for: fresh vegetables (+6.4 percent from +22.6 percent in April), tobacco (+3.0 percent from +6.4 percent) and liquid milk (+0.2 percent from 0.3 percent). Prices of pork increased by 33.6 percent, compared to a 33.5 percent rise in April. In contrast, cost fell for: egg (-0.2 percent from -1.6 percent) and fresh fruits (-7.6 percent from -7.9 percent).
For non-food categories, upward prices pressure came from: clothing (+1.5 percent from +1.5 percent); rent, fuel & utilities (+1.6 percent from +1.4 percent), household equipment supplies and services (+0.6 percent from +0.5 percent); education, culture and entertainment (+1.2 percent from +1.2 percent), healthcare (+3.5 percent from +3.2 percent) and other goods and services (+2.2 percent from +1.7 percent). In contrast, downward prices pressures came from transport and communications (-2.6 percent from -2.4 percent).
On a monthly basis, consumer prices dropped by 0.5 percent, as compared to a 0.2 percent decline in the preceding month and market estimates of a 0.2 percent fall.
The producer prices index dropped by 2.8 percent year-on-year in May, lower than a 3.4 percent decline in the previous month and market expectations of a 3.3 percent fall. It was the smallest decrease since November 2014. The index has been in a negative territory since March 2012.