China’s producer price index (PPI) decreased by 4.6 per cent year-on-year (YoY) in May 2023. This measure of factory gate costs reflects a larger decrease than the 3.6 per cent drop seen in April. A further 0.9 per cent decrease was noted in PPI on a monthly basis, as per the National Bureau of Statistics (NBS).

The downward trend was a result of falling international commodity prices, weak industrial product demand domestically and abroad, and a high comparison base from the previous year, NBS statistician Dong Lijuan was quoted as saying by local media reports.

The average PPI from January to May declined by 2.6 per cent compared to the same period last year. Sectors such as oil and gas extraction saw a sharp decrease in their PPI, with a drop of 19.1 per cent.

However, not all sectors experienced a decrease. The PPI of textile and garment industries saw a 1 per cent increase.

Dong added that last year’s price movements contributed to a 2.8 percentage point drop in the PPI YoY in May, compared to 2.6 percentage points in April. Additionally, the consumer price index (CPI), a main inflation indicator, edged up by 0.2 per cent YoY in May.

Fibre2Fashion News Desk (NB)

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China's PPI slumps by 4.6% YoY in May 2023: NBS

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