Industrial Producer Price Changes - In July, the industrial producer's ex-factory prices saw a year-on-year decline of 3.6%, with production material prices dropping by 4.3%, contributing approximately 3.20 percentage points to the overall decline [8][9] - The mining industry experienced a significant price drop of 14.0%, while raw material prices fell by 5.4% and processing industry prices decreased by 3.1% [8][9] - Consumer goods prices decreased by 1.6%, with food prices down by 1.8% and durable goods prices down by 3.5% [8][9] Industrial Producer Purchase Price Changes - The purchase prices for industrial producers fell by 4.5% year-on-year, with fuel and power prices decreasing by 10.8% and black metal materials down by 8.0% [10] - Chemical raw materials saw a decline of 6.5%, while agricultural products dropped by 4.6% [10] - In contrast, prices for non-ferrous metal materials and wires increased by 2.8% [10] Monthly Price Changes - Month-on-month, the industrial producer's ex-factory prices decreased by 0.2%, with production materials down by 0.2% and consumer goods prices also declining by 0.2% [7][8] - The mining sector's prices fell by 0.2%, while raw materials and processing industries saw decreases of 0.1% and 0.3%, respectively [7][8] - The purchase prices for industrial producers decreased by 0.3% month-on-month, with notable declines in building materials and non-metallic prices by 1.4% [10]

Core Insights - In June 2025, the national industrial producer's ex-factory prices decreased by 3.6% year-on-year and 0.4% month-on-month, while the purchase prices decreased by 4.3% year-on-year and 0.7% month-on-month [1][10]. Group 1: Year-on-Year Changes - In June, the ex-factory prices of industrial producers saw a decline in production materials by 4.4%, contributing approximately 3.26 percentage points to the overall decrease. The mining industry prices fell by 13.2%, raw materials by 5.5%, and processing industry prices by 3.2% [4]. - The prices of living materials decreased by 1.4%, impacting the overall ex-factory price by about 0.35 percentage points. Food prices dropped by 2.0%, while clothing prices increased by 0.1% and durable goods prices decreased by 2.7% [4]. - The purchase prices of industrial producers showed a significant decline in fuel and power categories by 10.4%, black metal materials by 8.0%, and chemical raw materials by 6.2% [7]. Group 2: Month-on-Month Changes - In June, the ex-factory prices of industrial producers decreased by 0.6% for production materials, contributing approximately 0.42 percentage points to the overall decline. The mining industry prices fell by 1.2%, raw materials by 0.7%, and processing industry prices by 0.5% [8]. - Living materials prices saw a slight decrease of 0.1%, with food prices down by 0.3% and durable goods prices down by 0.1% [8]. - The purchase prices of industrial producers decreased by 0.7%, with notable declines in fuel and power categories by 2.0% and black metal materials by 1.1% [9]. Group 3: Key Industry Price Changes - The coal mining and washing industry experienced a significant year-on-year price drop of 21.8%, while the oil and natural gas extraction industry saw a decrease of 12.6% [9]. - The non-metallic mining industry prices fell by 1.3%, and the agricultural and food processing industry prices decreased by 3.7% [9]. - In contrast, the prices in the non-ferrous metal mining industry increased by 12.0% year-on-year [9].

Core CPI and Economic Resilience - In April, China's core CPI remained stable year-on-year, reflecting the resilience of the domestic economy despite external fluctuations [1][2] - The core CPI, excluding food and energy prices, increased by 0.5% year-on-year, indicating a stable inflationary environment [1][2] CPI and Price Movements - The overall CPI in April saw a month-on-month increase of 0.1%, reversing a previous decline of 0.4% [1][2] - Food prices rose by 0.2% month-on-month, influenced by seasonal factors and demand recovery, particularly in travel services [2][3] - Energy prices decreased by 4.8% year-on-year, with gasoline prices dropping by 10.4%, contributing significantly to the overall CPI decline [2][3] PPI Trends - The Producer Price Index (PPI) fell by 0.4% month-on-month and 2.7% year-on-year, indicating a consistent downward trend in industrial prices [3][4] - The gap between purchase prices and factory prices has narrowed, suggesting synchronized adjustments in upstream and downstream prices [4] Policy Measures and Economic Outlook - The Chinese government is intensifying economic stabilization policies, including a comprehensive financial policy package aimed at stabilizing the market and expectations [5][6] - Upcoming holidays and strong tourism demand are expected to drive service prices up, leading to a moderate recovery in CPI [6]

Core Insights - In April 2025, the national industrial producer's ex-factory prices decreased by 2.7% year-on-year and 0.4% month-on-month, while the purchase prices decreased by 2.7% year-on-year and 0.6% month-on-month [1][4][6] - The average decline in ex-factory and purchase prices from January to April 2025 was 2.4% compared to the same period last year [1][7] Group 1: Year-on-Year Changes - In April, the prices of production materials fell by 3.1%, contributing approximately 2.28 percentage points to the overall decline in ex-factory prices [3][6] - The mining industry saw a significant price drop of 9.4%, while raw materials and processing industries experienced declines of 3.6% and 2.3%, respectively [3][7] - Consumer goods prices decreased by 1.6%, with food prices down by 1.4% and durable goods prices down by 3.7% [3][7] Group 2: Month-on-Month Changes - In April, production material prices decreased by 0.5%, impacting the overall ex-factory price level by approximately 0.37 percentage points [6][9] - The mining sector's prices fell by 2.1%, while raw materials and processing industries saw declines of 1.0% and 0.2%, respectively [6][9] - Consumer goods prices decreased by 0.2%, with food prices down by 0.1% and durable goods prices down by 0.7% [6][9] Group 3: Purchase Price Trends - In April, the purchase prices for fuel and power decreased by 7.7%, while black metal materials and chemical raw materials saw declines of 6.7% and 4.1%, respectively [9][10] - Prices for agricultural products and textile raw materials fell by 2.9% and 2.3%, respectively, while prices for non-ferrous metal materials and wires increased by 8.5% [9][10]