Core Viewpoints - The improvement in consumer demand stabilizes the core CPI, but supply-side factors significantly suppress inflation readings [3][72] - The core commodity PPI shows a notable rebound primarily due to demand improvement, with tariff impacts on prices not intensifying [3][72] - The overall CPI aligns with market expectations, with food supply showing a mixed performance leading to a slight decline in food CPI [28][74] Group 1: Core CPI Characteristics - Characteristic 1: The core commodity PPI rebounded by 0.3 percentage points to -1.4% YoY, driven by sustained effects of consumption policies and a moderation in tariff impacts [3][72][8] - Characteristic 2: The core commodity CPI increased by 0.1 percentage points to 0.2% YoY, supported by consumption policies and rising gold prices, with gold jewelry prices up 40.1% YoY [19][73] - Characteristic 3: The service CPI rose by 0.2 percentage points to 0.5% YoY, aided by an increase in holiday days, which enhanced service demand [22][61] Group 2: Future Outlook - The combination of policy reinforcement and recovery in domestic demand is expected to alleviate inflationary pressures, although supply-side changes may still impose constraints on price readings [5][74] - Continued emphasis on policies to boost service consumption may further improve core service CPI, while the "old-for-new" policy could support core commodity CPI and PPI [5][74] - Despite these positive factors, low capacity utilization in downstream sectors and uncertainties regarding tariffs may still limit price recovery [5][74] Group 3: Regular Tracking - The CPI remained flat YoY, with improvements in both core commodity and core service CPI [38][74] - The PPI continued to decline, with a YoY drop of 0.6 percentage points to -3.3%, particularly in production materials [38][74] - Food CPI showed a slight decline due to mixed supply conditions, with fresh fruits and fish prices rising while seasonal vegetables saw price drops [28][74]

Core Viewpoints - The improvement in consumer demand stabilizes the core CPI, but supply-side factors significantly suppress inflation readings [3][68] Group 1: Key Features of Core CPI Stabilization - Feature 1: The core commodity PPI shows a significant rebound, primarily due to improved demand and a lack of further tariff impacts. In May, the core commodity PPI increased by 0.3 percentage points to -1.4% [3][68] - Feature 2: Consumption promotion policies combined with rising gold prices lead to an increase in core commodity CPI. In May, the core commodity CPI rose by 0.1 percentage points to 0.2% [4][19] - Feature 3: The increase in holiday days in May allows for a more substantial release of service demand, pushing the core service CPI higher. The service CPI rose by 0.2 percentage points to 0.5% in May [4][22] Group 2: Outlook and Regular Tracking - The combination of policy reinforcement and recovery in domestic demand is expected to alleviate inflationary pressures, but supply-side changes must be monitored for their impact on price readings [5][33] - The overall CPI in May was -0.1%, slightly better than market expectations, with food supply showing a mixed performance [5][27] - The non-food CPI saw improvements in transportation and communication, while fuel prices for transportation significantly declined [51][71]

Group 1 - The Consumer Price Index (CPI) decreased by 0.2% month-on-month and 0.1% year-on-year in May, while the Producer Price Index (PPI) fell by 0.4% month-on-month and 3.3% year-on-year, indicating a continued impact of consumption-boosting policies [1][2] - Energy prices were the main factor dragging down both the CPI and PPI, with energy prices decreasing by 6.1% year-on-year and 1.7% month-on-month, significantly affecting the overall CPI decline [1] - Core CPI, excluding food and energy, increased by 0.6% year-on-year, with hotel accommodation and tourism prices rising by 4.6% and 0.8% respectively, indicating a recovery in certain sectors [1] Group 2 - PPI data showed marginal improvement in terminal consumer demand, with life goods prices stabilizing and some manufacturing prices narrowing their year-on-year decline [2] - High-tech product demand is expanding, with prices in sectors like integrated circuit packaging and testing, aircraft manufacturing, and wearable smart devices increasing by 3.6%, 3.0%, and 2.1% respectively [2] - Economic analysts predict a likely upward trend in the price index, with CPI expected to gradually recover and PPI showing signs of marginal improvement due to previous consumption-boosting policies [2]

Group 1: CPI Analysis - In May, the Consumer Price Index (CPI) decreased by 0.2% month-on-month and by 0.1% year-on-year, while the core CPI, excluding food and energy, increased by 0.6%, with the growth rate expanding by 0.1 percentage points compared to the previous month [1][2][3] - The month-on-month decline in CPI was primarily driven by a 1.7% decrease in energy prices, which accounted for approximately 70% of the total decline in CPI [2] - Food prices fell by 0.2%, with seasonal vegetables seeing a 5.9% price drop, while prices for eggs, pork, and poultry slightly decreased by 0.3% to 1.0% [2][3] Group 2: PPI Analysis - The Producer Price Index (PPI) decreased by 0.4% month-on-month and by 3.3% year-on-year, with the year-on-year decline expanding by 0.6 percentage points compared to the previous month [1][4][5] - The month-on-month PPI decline was influenced by international factors, including a 5.6% drop in oil and gas extraction prices and a 3.5% decrease in refined oil product manufacturing prices [4] - Some sectors showed marginal price improvements, with consumer demand policies positively impacting prices in certain industries, such as a 12.8% increase in the price of arts and crafts and a 0.8% rise in footwear manufacturing [5]

Core Viewpoint - The article discusses the changes in the Consumer Price Index (CPI) and Producer Price Index (PPI) in April, highlighting a shift in CPI from a decline to an increase, while PPI remains stable in its decline. The analysis indicates that various factors, including food prices and international commodity prices, are influencing these trends. CPI Analysis - In April, the CPI changed from a decrease of 0.4% in the previous month to an increase of 0.1%, with a year-on-year decrease of 0.1% remaining unchanged from the previous month [1][2] - The core CPI increased by 0.2% month-on-month and rose by 0.5% year-on-year, maintaining stability [1][3] - Food prices rose by 0.2% month-on-month, exceeding seasonal levels by 1.4 percentage points, with beef prices increasing by 3.9% due to reduced imports [5] - Travel service prices saw significant increases, with airfares up by 13.5% and hotel prices up by 4.5%, contributing approximately 0.10 percentage points to the CPI increase [5][3] - Year-on-year, energy prices fell by 4.8%, with gasoline prices down by 10.4%, significantly impacting the CPI [5] PPI Analysis - The PPI decreased by 0.4% month-on-month, with the decline rate consistent with the previous month [6][7] - The decline in PPI is attributed to international factors affecting domestic prices, particularly in the oil and gas extraction sector, which saw a 3.1% decrease [9] - Seasonal declines in energy prices, particularly in coal mining, also contributed to the PPI decrease, with coal prices down by 3.3% [9] - Some industries are experiencing improved supply-demand relationships, leading to a narrowing of price declines, such as in the black metal smelting and non-metal mineral products sectors [10] Industry Trends - High-tech industries are driving price increases in related sectors, with wearable smart device manufacturing prices rising by 3.0% year-on-year [10][11] - Policies promoting consumption and equipment upgrades are showing effects, with prices in consumer goods and equipment manufacturing sectors experiencing reduced declines [10] - The diversification of trade is expanding markets, leading to price increases or reduced declines in certain export industries, such as integrated circuit packaging [11]