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Month-to-month Rise of CPI and PPI Goes down in October 2018

Submit Time:14-01-2019 | Zoom In | Zoom Out

Author: | Source:National Bureau of Statistics

Abstract:

  The National Bureau of Statistics released today the data on the National Consumer Price Index (CPI) and Industrial Producer Price Index (PPI) in October 2018. In this regard, Sheng Guoqing, a senior statistician from the Department of Urban Surveys of the National Bureau of Statistics, gave his interpretation.

  I. CPI month-on-month rise declines, but the year-on-year rise is the same as that of last month

  On a month-on-month basis, CPI rose by 0.2%, down by 0.5% over last month. Specifically, food prices declined by 0.3%, causing the CPI to decline by about 0.05%; non-food prices rose by 0.3%, causing the CPI to rise by about 0.24%. CPI month-on-month rise declined mainly because food prices declined from a rise. With regard to food prices, fresh vegetable prices declined by 3.5% due to the centralized supply of autumn vegetables and vegetables stored for winter; when the temperature became cooler, the production capacity of laying hens increased, and the egg prices dropped by 4.0%. The above two factors caused the CPI to decline by about 0.12%. Owing to the increasing demand for meat consumption, pork, beef and mutton prices rose by 1.0%, 1.1% and 1.8%, respectively; given the tight supply in the fresh fruit market, the prices rose by 1.9%. The above four factors caused the CPI together to rise by about 0.07%. With regard to non-food prices, the prices of gasoline, diesel, coal and LNG rose by 4.2%, 4.7%, 2.9% and 1.8%, respectively, causing the CPI to rise by about 0.12%; clothes prices rose by 0.8%, causing the CPI to rise by about 0.06%; the prices of air tickets and tourism declined by 7.2% and 0.9%, causing the CPI to decline by about 0.04%.

  On a year-on-year basis, CPI rose by 2.5%, same as last month. Specifically, food prices rose by 3.3%, causing the CPI to rise by about 0.64%; non-food prices rose by 2.4%, causing the CPI to rise by about 1.90%. With regard to food prices, the prices of fresh fruits, fresh vegetables and eggs rose by 11.5%, 10.1% and 7.8%, respectively, causing the CPI to rise by about 0.47%; beef, mutton and poultry prices rose by 4.5%, 9.9% and 4.3%, respectively, causing the CPI to rise by about 0.10%; pork prices declined by 1.3%, which was narrowed down for five consecutive months. With regard to non-food prices, housing prices rose by 2.5%, causing the CPI to rise by about 0.55%; prices of educational services and health care rose by 3.2% and 2.6%, respectively, causing the CPI to rise by about 0.43%; gasoline and diesel prices rose by 22.5% and 25.0%, respectively, causing the CPI to rise by about 0.44%. It is estimated that carryover effects of price changes in last year contributed about 0.3% and new price-rising factors contributed about 2.2% to the 2.5% year-on-year increase of the CPI in October.

  II. PPI month-on-month rise and year-on-year rise decline

  On a month-on-month basis, PPI rose by 0.4%, 0.2% down over last month. Specifically, the prices of means of production rose by 0.6%, and prices of means of livelihood stayed the same as last month. Among the 40 industrial categories surveyed, 27 industries saw rising prices, 8 industries saw flat prices and 5 industries saw declining prices. Among major industries, the growth of oil, coal and other fuel processing industries declined, increased by 3.1%, 0.9% down over last month; that of chemical raw material and chemical product manufacturing industry rose by 0.9%, 0.1% down. The growth of oil and natural gas mining industry rose by 6.3%, 2.5% up; that of coal mining and washing industry rose by 1.1%, 0.6% up; that of non-ferrous metal smelting and rolling industry rose by 0.5%, 0.2% up; that of non-metal mineral product industry rose by 0.7%, 0.1% up. The growth of chemical fiber manufacturing industry declined by 0.3% from a rise. In addition, the prices ferrous metal smelting and rolling industry stayed the same as last month.

  On a year-on-year basis, PPI rose by 3.3%, declined by 0.3% over last month. Specifically, the prices of means of production rose by 4.2%, and the prices of means of livelihood rose by 0.7%. Among major industries, the growth of chemical raw material and chemical product manufacturing industry declined, which rose by 6.1%, 0.9% down over last month; that of non-metal mineral product industry rose by 7.3%, 0.8% down; that of non-ferrous metal smelting and rolling industry rose by 6.9%, 0.3% down; that of oil, coal and other fuel processing industries rose by 24.0%, 0.1% down. The growth of oil and natural gas mining industry rose by 42.8%, 1.6% up. The decline of non-ferrous metal smelting and rolling industry expanded by 0.9% to 2.6%. It is estimated that carryover effects of price changes in last year contributed about 1.2% and new price-rising factors contributed about 2.1% to the 3.3% year-on-year increase of the PPI in October.


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