Interpretation: CPI May 2020 Year-On-Year Inflation Continued To Fall, PPI Narrowed Narrower Than The Decline

The National Bureau of statistics released today's May national CPI (consumer price index) and PPI (producer price index of industrial producer) data in 2020. In this regard, Dong Lijuan, Senior Statistician of the National Bureau of statistics, explained.

1. CPI continues to decline, further down compared with the same period last year.

In May, the domestic epidemic situation was generally stable, and resumed production, resumed production and resumed business in an orderly way, and the market supply and demand situation improved further. From the ring to see, CPI continued to decline by 0.8%, a decrease of 0.1 percentage points from last month. Among them, food prices fell by 3.5%, the decline by 0.5 percentage points, the impact of CPI dropped by about 0.78 percentage points, is the most important factor driving the decline of CPI. In the food industry, a large number of local produce dishes were listed on the market, prices continued to decline by 12.5%, the decline increased by 4.5 percentage points, pig production capacity resumed further, pork supply continued to increase, and the temperature increased, consumption fell into the off-season, prices continued to decline by 8.1%, the decline increased by 0.5 percentage points, the supply of eggs and fresh fruits was adequate, prices continued to decline by 4.8% and 0.8% respectively, and the fishing season was approaching. The supply of products decreased, and the price fell from 0.1% last month to 1.3%. Non food prices fell from 0.2% last month to flat. In non food items, clothing prices rose by 0.2% on the new market of summer clothing, and the price of liquefied petroleum gas (LPG) dropped by 1.9%, due to the continuous decline of crude oil prices.

From the same period of view, CPI rose 2.4%, or 0.9 percentage points lower than last month. Among them, food prices rose 10.6%, or 4.2 percentage points down, affecting CPI rose about 2.15 percentage points. Pork prices rose 81.7%, or 15.2 percentage points, while beef, mutton, chicken and duck prices rose by 4.4% - 19.4%, and the prices of fresh fruits, eggs and fresh vegetables dropped by 19.3%, 14.5% and 8.5%, respectively. Non food prices rose 0.4%, or the same as last month, affecting CPI's rise of about 0.29 percentage points. The prices of education, culture, entertainment and medical care increased by 2.2% and 2.1% respectively, while the prices of transportation, communications, housing and clothing decreased by 5.1%, 0.5% and 0.4% respectively. The core CPI, excluding food and energy prices, rose 1.1% over the same period last month, the same as last month. It is estimated that in the 2.4% year-on-year increase in May, the impact of the price change last year was about 3.2 percentage points, and the new price increase was about -0.8 percentage points. From 1 to May, CPI increased by 4.1% over the same period last year.

　 Two, the PPI narrowed narrowing, down from the same period last year.

In May, industrial production further recovered and market demand improved. From the ring to see, PPI fell 0.4%, the decline narrowed by 0.9 percentage points from last month. Among them, the prices of means of production fell by 0.5%, the decline narrowed by 1.3 percentage points, the price of living goods dropped by 0.3%, and the rate of decline increased by 0.2 percentage points. From the survey of 40 industrial sectors, 20 prices dropped, 10 decreased, 10 increased, 2 increased; 10 were flat, and 8 increased. Affected by changes in international crude oil prices, oil related industries have narrowed their product prices. Among them, oil and natural gas extraction industry prices fell 9.1%, narrowed 26.6 percentage points; oil, coal and other fuel processing industry prices fell 4%, narrowed 5 percentage points; chemical raw materials and chemical products manufacturing prices fell 1.2%, narrowed 1.8 percentage points. Together, the above three sectors affected PPI's decline by about 0.24 percentage points, 0.52 percentage points lower than last month. The price of non-ferrous metal smelting and calendering processing industry has increased by 1.6%. The price of ferrous metal smelting and calendering processing industry has been leveled off. In addition, the price of coal mining and washing industry has dropped by 2.9%, and the decline has increased by 0.6 percentage points.

From the year-on-year perspective, by a slight increase in the base number last year, PPI fell by 3.7%, a 0.6 percentage point increase from last month. Among them, the prices of means of production fell by 5.1%, the increase by 0.6 percentage points, and the price of living goods rose by 0.5%, or 0.4 percentage points. Prices in major industries have increased. Among them, the price of oil and natural gas extraction industry decreased by 57.6%, an increase of 6.2 percentage points; the price of oil, coal and other fuel processing industry decreased by 24.4%, an increase of 4.6 percentage points; the prices of chemical and chemical products decreased by 9.2%, an increase of 0.9 percentage points; the price of coal mining and washing industry decreased by 8.8%, by 3.4 percentage points; ferrous metal smelting and calendering processing industry prices. The grid dropped by 8%, an increase of 0.7 percentage points. In addition, the price of non-ferrous metal smelting and calendering processing industry dropped by 4.4%, and the decline narrowed by 1.6 percentage points. It is estimated that in May, the year-on-year decline of 3.7%, the impact of last year's price change is about -0.5 percentage points, the impact of the new price increase is about -3.2 percentage points. From 1 to May, the PPI decreased by 1.7% over the same period last year.