China's producer price index increased by 0.6 percent from a year earlier in May, easing from a 0.9 percent rise in the previous month and matching market expectations. Prices of means of production slowed (0.6 percent vs 0.9 percent), namely processing (0.5 percent vs 0.9 percent), with prices of raw materials falling (-0.6 percent vs flat reading) while cost of extraction went up faster (6.1 percent vs 5.3 percent). On the other hand, consumer goods inflation was steady (at 0.9 percent), as cost of food production (2.2 percent vs 1.9 percent) and daily use goods (0.4 percent vs 0.3 percent) offset a slowdown in cost of clothing (1.5 percent vs 1.7 percent), while prices of durable goods fell at a faster pace (-0.8 percent vs -0.6 percent). On a monthly basis, producer prices rose 0.2 percent in May, following a 0.3 percent gain in April. Producer Prices Change in China averaged 1.29 percent from 1995 until 2019, reaching an all time high of 13.47 percent in July of 1995 and a record low of -8.20 percent in July of 2009.
Producer Prices Change in China is expected to be 0.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in China to stand at 2.10 in 12 months time. In the long-term, the China Producer Prices Change is projected to trend around 1.30 percent in 2020, according to our econometric models.