comments and feedback

CPI Rose by 1.6% and PPI Ended Its Five-Consecutive-Year Drop by up 6.3% in 2017

Submit Time:29-01-2018 | Zoom In | Zoom Out

Author: | Source:People’s Daily (January 11, 2018)

Abstract:

According to the data released by the National Bureau of Statistics of China on January 10, 2018, the consumer price index (CPI) in December 2017 rose by 0.3% month on month and 1.8% year on year and the producer price index (PPI) over the same period went up by 0.8% month on month and 4.9% year on year. Throughout the year of 2017, CPI rose by 1.6%, an increase down by 0.4 percentage point over the previous year while PPI ended its five-consecutive-year drop since 2012 by going up 6.3%.  

From the year-on-year point of view, the CPI growth in December was 0.1 percentage point higher than that of the last month. Food prices fell by 0.4%, causing CPI to decline by around 0.08 percentage point. Non-food prices went up by 2.4%, an increase down by 0.1 percentage point over that of the previous month and causing CPI to grow by about 1.93 percentage points.  

Sheng Guoqing, senior statistician of the National Bureau of Statistics of China noted that the margin of CPI growth in 2017 narrowed down by 0.4 percentage point over the 2.0% growth rate of the previous year. Food prices went down by 1.4%, which was the first time for them to drop since 2003. The decline was mainly attributed to the price shrink of pork and vegetable. Non-food prices climbed up by 2.3%, an increase up by 0.9 percentage point over the previous year. Of these, the prices of industrial consumer goods rose by 1.7% and the service prices went up by 3.0%.  

From the year-on-year point of view, the CPI growth in December was 0.9 percentage point lower than that of the last month. In terms of major industries, the oil and natural gas extraction, ferrous metal smelting and rolling, oil processing, non-ferrous metal smelting and rolling and coal mining and washing worked together to drag the PPI growth down by some 0.6 percentage point on a year-on-year basis.  

PPI ended its five-consecutive-year drop since 2012 by going up 6.3% in 2017. It declined by 1.4% in 2016. The prices of means of production rose by 8.3%, causing PPI to grow by 6.13 percentage points. Of these, the oil and natural gas extraction, coal mining and washing and ferrous metal smelting and rolling boasted of the most considerable increase margins, which were 29.0%, 28.2% and 27.9%, respectively. The prices of means of subsistence went up by 0.7%, causing PPI to grow by around 0.17 percentage point.  


Related Articles