MNI BRIEF: China May CPI Remains Negative For Fourth Month
China's Consumer Price Index fell 0.1% y/y in May, unchanged from April's pace but above market expectations of -0.2%, mainly affected by falling energy prices, data from the National Bureau of Statistics showed on Monday.
CPI fell 0.2% m/m, reversing April's 0.1% gain, driven by a 1.7% fall in energy prices which dampened the overall index by about 0.13 percentage points m/m, accounting for nearly 70% of the total decline, the Bureau added. Core CPI, excluding food and energy prices, rose 0.6% y/y, edging up from the previous 0.5% growth.
Key Drivers | Month-on-month Change | Year-on-year Change | ||
| May | April | May | April | |
| Fuel | -3.7% | -2.0% | -12.9% | -10.2% |
| Tourism | 0.8% | 3.1% | 0.9% | -0.5% |
| Vegetables | -5.9% | -1.8% | -8.3% | -5.0% |
| Fruit | 3.3% | 2.2% | 5.5% | 5.2% |
PPI declined 3.3% y/y, the lowest level since July 2023, extending from April's 2.7% drop and marking the 32nd consecutive negative read, under performing the market consensus of -3.0%.
On a m/m basis, PPI fell 0.4%, unchanged from the previous month, driven by falling global oil prices, a seasonal decline in coal use and lower steel and cement prices as supply outweighed demand.
