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CPI Rises Slightly over June in July

Submit Time:15-09-2017 | Zoom In | Zoom Out

Author: | Source:People's Daily (August 10, 2017)

Abstract:

According to July's national consumer price index (CPI) and producer price index (PPI) released by the National Bureau of Statistics on August 9, the CPI rose by 0.1% over June and 1.4% year on year; PPI grew by 0.2% over June and 5.5% year on year. 

From a month-on-month perspective, in July, CPI rose by 0.1%, showing a basically stable trend. Sheng Guoqing, a senior statistician from the Department of Urban Surveys of the National Bureau of Statistics, analyzed that the fall of food prices in July caused the CPI to decline by about 0.02 percentage point. Due to a large range of continuous high temperature and regional heavy rainfall, fresh vegetable prices rose by 7.0% after five months' decline. Egg prices rose by 4.0% because high temperature led to a decrease in egg laying rate and higher storage and transportation costs. The two together caused the CPI to rise by about 0.17 percentage point. As a lot of seasonal fruits were put on the market, fresh fruit prices fell by 9.2%; pork consumption entered into a slack season, so pork prices fell by 0.7%. The two together caused the CPI to fall by about 0.18 percentage point. Non-food prices rose by 0.2%, causing the CPI to rise by about 0.13 percentage point. Because more people travelled during the summer vacation, air ticket prices and travel agency charges rose by 10.5% and 6.1%, respectively, both of which together caused the CPI to rise by about 0.13 percentage point. 

From a year-on-year perspective, in July, the CPI rose by 1.4%, down 0.1 percentage point over the previous month. Food prices fell by 1.1%, causing the CPI to fall by about 0.21 percentage point. Specifically, pork prices fell by 15.5%, causing the CPI to decline by 0.46 percentage point; fresh vegetable prices rose by 9.1%, causing the CPI to rise by about 0.20 percentage point. Non-food prices rose by 2.0%, causing the CPI to rise by about 1.62 percentage points. 

It is estimated that carryover effects of price changes in last year contributed about 1.0 percentage point and new price-rising factors contributed about 0.4 percentage point to the 1.4% year-on-year increase in July. 

From a month-on-month perspective, July saw a PPI change from decline to increase by 0.2%, resulting mainly from higher prices of steel and nonferrous metals. Prices of means of production rose by 0.2%, and prices of means of livelihood remained the same. In the surveyed 40 industries, 20 industries saw higher product prices, an increase of nine 9 over the previous month. In terms of anchor industries, ferrous metal smelting and rolling processing industry and non-ferrous metal smelting and rolling processing industry achieved expanded month-on-month increase of product prices, up 2.7% and 1.5%, respectively, both of which together caused the PPI to rise by about 0.3 percentage point. Coal mining and washing industry realized narrowed month-on-month decline in product prices, down 0.1%; oil and gas extraction industry and oil processing industry realized expanded month-on-month decline in product prices, down 5.3% and 3.0%, respectively. 

From a year-on-year perspective, the PPI rose by 5.5%, remaining unchanged for three consecutive months. In the anchor industries, coal mining and washing industry, non-ferrous metal smelting and rolling processing industry, and oil processing industry achieved narrowed year-on-year increase of product prices, up 32.3%, 12.7% and 10.9%, respectively; ferrous metal smelting and rolling processing industry and non-metallic mineral products industry achieved expanded year-on-year increase of product prices, up 27.5% and 8.5%, respectively; product prices of chemical raw material and chemical manufacturing industry rose by 7.6% year on year, remaining the same as last month. The above six industries together caused the PPI to rise about 4.4 percentage points, accounting for 80.0% of the total increase. 

It is estimated that carryover effects of price changes in last year contributed about 4.6 percentage points and new price-rising factors contributed about 0.9 percentage point to the 5.5% year-on-year increase in July. 


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