According to data released by the National Bureau of Statistics on June 9, the factory prices of industrial producers in May rose 9.0% year-on-year and 1.6% month-on-month. "In May, international crude oil, iron ore, non-ferrous metals and other bulk commodities prices rose sharply, domestic demand recovered steadily, and my country's industrial product prices continued to rise." said Dong Lijuan, a senior statistician in the City Department of the National Bureau of Statistics.
Data shows that from a month-on-month perspective, the PPI rose by 1.6% in May, an increase of 0.7 percentage points from the previous month. From a year-on-year perspective, PPI rose by 9.0%, an increase of 2.2 percentage points from the previous month.
Wen Bin, chief researcher of China Minsheng Bank, said that the PPI rose 9% this month from the same period last year, an increase that exceeded expectations, setting a new high since January 2008. First, last year's low base effect contributed to the unexpected rise of PPI this month. Second, rising prices of bulk commodities have led to rising prices of raw materials. Wen Bin believes that my country has taken measures to ensure the supply of bulk commodities and stabilize prices, and the prices of some bulk commodities have fallen, and the PPI growth rate is expected to be close to the top.
Source: Chemical Network
