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CPI Dropped while PPI Changed from Decrease to Rising on a Month-on-Month Basis in May 2018

Submit Time:26-07-2018 | Zoom In | Zoom Out

Author: | Source:National Bureau of Statistics

Abstract:

  The State Statistics Bureau published today the consumer price index (CPI) and producer price index (PPI) of the whole country in May 2018, and they showed that CPI dropped by 0.2% on a month-on-month basis, and increased by 1.8% on a year-on-year basis; the PPI rose by 0.4% from the previous month, and by 4.1% on a year-on-year basis. Sheng Guoqing, senior statistician of the City Department of the State Statistics Bureau made the following interpretation.

  I. CPI continued decreasing on a month-on-month basis, and the year-on-year increase was of the same amplitude as last month

  On a month-on-month basis, the CPI dropped by 0.2%, the same amplitude as the previous month. The food price decreased by 1.3%, 0.6 percentage points less than that of the previous month, bringing down the CPI about 0.26 percentage points, which is the main cause of decrease of CPI. The prices of fresh food continued the trend of decrease, the prices of fresh vegetables and fruits respectively dropped by 4.6% and 2.7%; the prices of pork and aquatic products respectively dropped by 3.6% and 1.0%, and the total of the above four brought down the CPI by about 0.26 percentage points. The price of non-food rose by 0.1%, bringing the CPI up by about 0.10 percentage points. Because of the domestic price adjustment of refined petroleum products, the prices of gasoline and diesel oil rose respectively by 3.7% and 4.1%, pushing the CPI up by about 0.07 percentage points. The residing price rose by 0.1%, the prices of clothing and medical and health service rose by 0.2%, and the total of these three pushed the CPI up by about 0.06 percentage points. Besides, the prices of air tickets, accommodation in hotels and tourism respectively dropped by 7.7%, 1.9% and 1.6%, bringing down the CPI in total by about 0.05 percentage points.

  On a year-on-year basis, the CPI rose by 1.8%, the same amplitude as the previous month. The price of food rose by 0.1%, bringing the CPI up by about 0.01 percentage points. The prices of chicken egg and fresh vegetables respectively rose by 24.7% and 10.0%, pushing the CPI up by about 0.32 percentage points in total; the prices of beef, mutton and poultry meat respectively rose by 3.0%, 13.5% and 6.4%, pushing the CPI up by about 0.13 percentage points in total; the prices of pork and fresh fruits dropped respectively by 16.7% and 2.7%, bringing down in total the CPI by about 0.48 percentage points. The price of non-food rose by 2.2%, bringing the CPI up by about 1.74 percentage points. The price of medical and health service rose by 5.1%, that of education service by 2.7%, and the residing price rose by 2.2%. According to estimation, in the year-on-year increase of 1.8% of May, the carryover effect of the price variation last year was about 1.4 percentage points, and the effect of new price increase was about 0.4 percentage points.

  II. The PPI changed from dropping to rising on a month-on-month basis, and the year-on-year increase amplitude expanded.

  On a month-on-month basis, the PPI started rising from the previous falling. The price of means of production started rising from the previous falling, rising by 0.5%; and the price of the means of livelihood remained unchanged. Prices in 25 of the 40 industrial sectors surveyed rose, 13 more than that of the previous month. Among major industries, due to the rising international crude oil price, oil and natural gas exploration rose by 7.5%, 4.3 percentage points more than that of the previous month; the prices of oil, coal and other fuel industries rose by 3.6%, an increase of 2.9 percentage points. The ferrous metal smelting and rolling processing industry rose by 1.3% from the previous falling movement, thanks to the booming demand for steel. The total of the above three industries brought up the PPI by about 0.3 percentage points, accounting for about 75% of the total rising. Increased amplitude of decrease was found in coal mining and dressing, with a drop of 1.2%, 0.3 percentage points more; also in power and heat production and supply, with a drop of 0.4%, also 0.3 percentage points more.

  On a year-on-year basis, the rising amplitude of PPI increased by 0.7 percentage points from the previous month. The price of means of production rose by 5.4%, 0.9 percentage points more than that of the previous month; the price of means of livelihood rose by 0.3%, 0.2 percentage points more than that of the previous month. Of the main industrial sectors, the rising amplitude increased in oil and natural gas tapping, processing of oil, coal and other fuels, ferrous metal smelting and rolling processing industry, chemical raw materials and chemical products manufacturing industry, non-ferrous metal smelting and rolling processing industry, the total effect of them brought up the PPI by about 0.67 percentage points. Those with falling rising amplitude include non-metal mineral products, rising by 10.6%, 0.4 percentage points lower than that of the previous month; and the coal mining and dressing, rising by 3.8%, 0.6% percentage points lower than that of the previous month. According to estimation, in the year-on-year increase of 4.1% of May, the carryover effect of the price variation last year was about 3.9 percentage points, and the effect of new price increase was about 0.2 percentage points.


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