MNI DATA BRIEF: China CPI Quickens to 1.3%; PPI Near 13Y High

China's May consumer price index climbed to the highest since September, gaining 1.3% y/y from 0.9% in April, though less than forecast 1.5%. The rise was partly attributed to the pandemic last year, which depressed prices, but also to recovering prices of services caused by increased spending during a major holiday as pandemic restrictions were lifted, according to the National Bureau of Statistics.

Still, inflation eased 0.2% m/m as rising pork supply depressed food prices, compared to April's m/m decline of 0.3%. Core CPI, excluding food and energy prices, was up 0.9% y/y in May, after 0.7% gain in April.

Producer price index measuring factory gate prices jumped 9.0% y/y, compared with April's 6.8% rise, higher than forecast 8.4% and was the highest since September 2008. PPI rose 1.6% m/m, accelerating from 0.9% reported last month, driven by the rising costs of raw materials such as iron ore and coke as well as non-ferrous metals including copper and aluminum.