Group 1 - In May 2025, the Producer Price Index (PPI) for industrial producers decreased by 3.3% year-on-year and 0.4% month-on-month, while the purchasing price index fell by 3.6% year-on-year and 0.6% month-on-month [2] - The average PPI and purchasing prices from January to May 2025 both declined by 2.6% compared to the same period last year [2] - The decline in domestic prices is influenced by international factors, particularly the drop in international crude oil prices, which led to a 5.6% decrease in the oil and gas extraction industry and a 3.5% decrease in refined petroleum product manufacturing [2] Group 2 - The coal mining and washing industry saw a price drop of 3.0%, while coal processing prices fell by 1.1% due to seasonal demand and sufficient inventory [2] - The black metal smelting and rolling industry, along with the non-metallic mineral products industry, experienced a price decline of 1.0% due to ample supply of construction materials [2] - The year-on-year decline in PPI has widened by 0.6 percentage points compared to the previous month, but some industries are showing signs of price recovery due to improved supply-demand relationships [3] Group 3 - Consumer demand is recovering, leading to price increases in living materials, supported by policies aimed at boosting consumption [3] - The development of high-end equipment manufacturing is contributing to price increases in related industries, reflecting a trend towards high-tech product demand [3] - The transition towards high-end, intelligent, and green industries is progressing steadily, with some sectors experiencing year-on-year price increases [3]

Core Viewpoint - In May, the Producer Price Index (PPI) in China decreased by 0.4% month-on-month and 3.3% year-on-year, with the year-on-year decline widening by 0.6 percentage points compared to the previous month [1] Group 1: PPI Changes - The month-on-month decline in PPI was primarily influenced by international input factors leading to price decreases in related domestic industries [1] - The price of crude oil fell, impacting domestic oil-related industries, with prices in the oil and gas extraction sector down by 5.6%, refined petroleum product manufacturing down by 3.5%, and chemical raw materials and products manufacturing down by 1.2% [1] - These three sectors collectively contributed approximately 0.23 percentage points to the month-on-month PPI decline, accounting for over 50% of the total decrease [1] Group 2: Domestic Price Influences - Domestic energy and raw material prices experienced a phase of decline, with coal mining and washing prices down by 3.0% due to seasonal demand factors and sufficient coal stockpiles [1] - The price of coal processing decreased by 1.1%, while black metal smelting and rolling industries, as well as non-metallic mineral products, saw a price drop of 1.0% due to ample supply of construction materials [1] - These four sectors together contributed approximately 0.18 percentage points to the month-on-month PPI decline [1]

Group 1 - The main reason for the month-on-month decline in PPI is the impact of international input factors leading to price decreases in related domestic industries [1] - The decline in international crude oil prices has resulted in a 5.6% decrease in the prices of the oil and gas extraction industry, a 3.5% decrease in refined petroleum product manufacturing prices, and a 1.2% decrease in the prices of chemical raw materials and chemical products manufacturing [1] - These three industries collectively contributed to a month-on-month decline in PPI of approximately 0.23 percentage points, accounting for over 50% of the total decline [1] Group 2 - Domestic energy and raw material prices have also experienced a phase of decline, with coal mining and washing prices decreasing by 3.0% due to seasonal demand factors [1] - The prices of coal processing have decreased by 1.1%, while the black metal smelting and rolling industry and non-metallic mineral products industry have both seen a 1.0% price decline [1] - The combined effect of these four industries contributed to a month-on-month decline in PPI of approximately 0.18 percentage points [1]

Group 1 - In April, China's Producer Price Index (PPI) decreased by 0.4% month-on-month and 2.7% year-on-year, with the year-on-year decline widening by 0.2 percentage points compared to the previous month [1] - The decline in PPI is attributed to changes in the international trade environment and a rapid drop in prices of certain international bulk commodities, affecting domestic industry prices [1] - Specific sectors such as oil and gas extraction saw a price decrease of 3.1%, while refined petroleum products and chemical manufacturing prices fell by 2.5% and 0.6% respectively [1] Group 2 - Seasonal declines in energy prices were noted, with coal mining and processing prices dropping by 3.3% due to the end of heating season and traditional off-peak demand [1] - The electricity and heat production and supply sector experienced a price decrease of 0.3%, influenced by lower costs of new energy generation and increased wind power output [1] - Despite international factors exerting downward pressure, domestic macro policies aimed at boosting consumption and the growth of high-tech industries have led to increased demand in certain sectors, resulting in positive price changes in some areas [1] Group 3 - Policies promoting consumption and equipment upgrades are expected to lead to a recovery in prices for certain consumer goods and manufacturing products [2] - In April, the year-on-year price decline for household washing machines narrowed by 0.3 percentage points, while food manufacturing and new energy passenger vehicles also saw a reduction in their price decline by 0.2 percentage points [2] - The diversification of trade and market expansion has contributed to price increases or reduced declines in some export sectors, with integrated circuit packaging and testing prices rising by 2.7% and semiconductor device manufacturing prices increasing by 1.0% in April [2]

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]