MNI BRIEF: China May CPI Flat At 0.3% Y/Y

China's Consumer Price Index rose by 0.3% y/y in May, flat from the previous 0.3% increase and slightly missing the market consensus of 0.4%, data from the National Bureau of Statistics showed Wednesday.

Food prices, which narrowed the previous decline by 0.7 pp to -2.0% y/y, dragged down the headline figure by 0.37 pp, as heavy rains in South China and reductions in hog production capacity weighed. A 0.8% rise in non-food prices also contributed 0.68 pp to the CPI growth, according to the NBS. Inflation fell 0.1% m/m, compared with the previous 0.1% rise.

The PPI declined for the 20th straight month by 1.4% y/y, about in line with the market consensus of a 1.5% fall. The figure narrowed from April's 2.5% decline and hit the highest level since March 2023 (-1.4%). PPI rose 0.2% from a month earlier, reversing the previous 0.2% decrease and the downward trend in the past six months, mainly driven by the rising prices of non-ferrous metals in the international market, according to the NBS.