China’s Producer Price Falls Further in May as Covid-19 Continues to Hit Global Demand

China’s Producer Price Falls Further in May as Covid-19 Continues to Hit Global Demand


China’s manufacturing sector is still under great pressure by the ongoing Covid-19 as data showed that the factory gate prices in May fell by the sharpest rate since March 2016.

 

The producer price index (PPI) plugned 3.7% in May year-on-year, expecting to reflect the weak global demand, while China’s consumer price index (CPI) rose 2.4% year-on-year, but down from 3.3% surge in April, according to the National Bureau of Statistics (NBS) data released on Wednesday. 

 

Last month, food prices soared 10.6% from a year earlier, but down 3.5% from April. Pork prices jumped 81.7% in May year-on-year, but decline 8.1% from a month earlier following the recovery from supply disruptions caused by the African swine fever virus.

 

Meanwhile, core inflation, excluding food and energy prices, rose 1.1% in May.

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