MNI 5 THINGS: China PPI Y/Y Growth Higher Than Expectated

By Iris Ouyang

     BEIJING (MNI) - China's National Bureau of Statistics released consumer

price index (CPI) and producer price index (PPI) data for June on Tuesday. Here

are five things MNI highlights:

     - PPI gained 4.7% year over year, higher than the 4.5% median in an MNI

survey in which 19 forecasters participated. The PPI growth in June was the

highest since the 4.9% recorded in December, accelerating from 4.1% growth in

May. 

     - The higher-than-expected growth was supported by strong gains of

commodity prices; and sectors such as gasoline and natural gas mining, smelting

and flattening of both ferrous and non-ferrous metals, chemical raw materials

and manufacturing, coal mining saw strong price growth. 

     - On a monthly basis, PPI climbed 0.3% in June, lower than the 0.4% m/m

reading in May. Slowing monthly growth of production costs of major commodities,

including gasoline, coal and natural gas, helped rein in the PPI monthly growth.

     - CPI increased 1.9% in June on an annualised basis, in line with MNI

survey expectations, from 1.8% in May. It was the highest since the 2.1% growth

in March. A slightly faster growth of food price to 0.3% from 0.2% and a flat

non-food price growth of 2.2% helped buoy the y/y CPI gain. 

     - CPI declined 0.1% month-on-month, a slight pick-up from the 0.2% drop in

May. A drop in food prices, including fruits (down 6.7%) and vegetables (down

1.8%), contributed to the decline, despite a rebound of pork at 1.1% after a

three-month decrease.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

[TOPICS: M$A$$$,M$Q$$$]