Core Insights - The overall price performance in May aligns with market expectations, with CPI showing "strong food, weak energy, and stable core" while PPI reflects "weak production materials and stable living materials" [1][2] CPI Analysis - In May, the CPI decreased by 0.1% year-on-year, maintaining this level for three consecutive months, and fell by 0.2% month-on-month, consistent with seasonal trends [1] - Food prices decreased by 0.2% month-on-month, which is less than the seasonal decline of 1.1 percentage points, driven by increased seasonal vegetable supply and a 5.9% drop in fresh vegetable prices [1] - Energy prices fell by 1.7% month-on-month, weaker than seasonal expectations, influenced by a decline in international crude oil prices [1] PPI Analysis - The PPI decreased by 3.3% year-on-year and by 0.4% month-on-month, with the decline in production materials being the main factor affecting PPI [2][3] - Production materials saw a month-on-month decrease of 0.6%, which is weaker than seasonal expectations, while living materials remained stable [2] Demand and Supply Dynamics - Total demand remains insufficient, with external demand facing challenges as exports fell by 4.8% year-on-year in May, down from 8.1% the previous month [3][4] - Internal demand is also weak, as durable goods demand has not rebounded, and rental prices have shown weakness, indicating overall consumer demand remains low [4] Competitive Landscape - Certain industries are experiencing oversupply and "involution" competition, which exacerbates downward pressure on PPI [5] - The need for price recovery requires simultaneous efforts on both supply and demand sides, including more proactive macro policies and addressing competitive pressures in the market [5]

Core Insights - The Consumer Price Index (CPI) increased by 0.1% month-on-month in April, while year-on-year it decreased by 0.1%. The Producer Price Index (PPI) decreased by 0.4% month-on-month and by 2.7% year-on-year [1][2]. CPI Analysis - The month-on-month CPI change shifted from decline to increase, with a core CPI increase of 0.2% month-on-month and a stable year-on-year increase of 0.5%. This reflects the resilience of the economy [2][4]. - Food prices rose by 0.2%, and service prices increased by 0.3%, driven by seasonal factors and demand recovery during the holiday period [3][4]. PPI Analysis - The PPI's month-on-month decline of 0.4% was consistent with the previous month, influenced by international factors and seasonal declines in energy prices [8][10]. - Certain industrial sectors showed signs of price recovery, with reduced year-on-year declines in sectors such as black metal smelting and non-metallic mineral products [5][6]. Sector Performance - High-tech industries and construction activities contributed to a positive trend in some industrial prices, with specific sectors like wearable smart devices and aircraft manufacturing showing price increases [5][6]. - The international oil price decline negatively impacted domestic oil-related industries, leading to price drops in sectors such as petroleum extraction and refining [10]. Economic Outlook - The People's Bank of China anticipates that policies aimed at expanding domestic demand will support a moderate recovery in price levels [2][11]. - Recent monetary policies, including interest rate cuts and structural tools, are expected to stimulate domestic demand and support price stability [11].

Core Viewpoint - In April, the national industrial producer price index (PPI) decreased by 2.7% year-on-year and 0.4% month-on-month, indicating a continued downward trend in industrial prices [1] Group 1: PPI Trends - The PPI in April fell by 0.4% compared to the previous month, maintaining the same decline rate as in March [1] - The primary reasons for the PPI decline include international input factors affecting domestic industry prices and seasonal decreases in certain domestic energy prices [1] Group 2: Economic Policies and Industry Growth - The Chinese government's macro policies aimed at boosting consumption are being intensified, leading to an expansion in high-tech industries [1] - There is an increase in demand in certain sectors, resulting in positive price changes in some areas [1]

Core Viewpoint - The Producer Price Index (PPI) has decreased by 0.4% month-on-month, with the decline rate remaining consistent with the previous month [1] Group 1: PPI Decline Factors - The primary reason for the PPI decline is the impact of international input factors leading to a decrease in domestic industry prices [1] - Changes in the international trade environment and a rapid decline in certain international bulk commodity prices have affected domestic industry prices [1] - Seasonal declines in domestic energy prices also contributed, particularly with the end of heating season in northern regions, leading to a decrease in coal demand [1] Group 2: Specific Industry Impact - The coal mining and washing industry, as well as coal processing prices, have seen a month-on-month decline of 3.3% due to the seasonal drop in demand [1]