MNI DATA IMPACT: China April CPI Eases, PPI Hits 4-Year Low

     BEIJING (MNI) - China's April inflation slowed to 3.3% y/y from 4.3% in

March as food supplies rose following the easing of the coronavirus outbreak.

The April result was the lowest level since September last year. Analysts had

expected 3.7% y/y.

     Factory-gate prices extended falls to a four-year low, as crude oil led

declines in commodity prices.

     Here are key takeaways from data released by the National Bureau of

Statistics on Tuesday:

     - Food costs decelerated to 14.8% y/y from 18.3% in March, accounting for

2.98 percentage points of the CPI gain.

     - Pork prices slowed to 96.9% y/y from 116.4% in March, as the production

capacity of hogs accelerated and the supply of pork continues to increase.

     - The core CPI, excluding food and energy prices rose 1.1% y/y, a decrease

of one percentage point from March.

     - On a monthly basis, CPI fell 0.9%, compared with the 1.2% decline in the

previous month. 

     - The PPI was -3.1% y/y, further extending the 1.5% fall in March to hit

the lowest level since April 2016 as industrial product prices continued to fall

alongside the declining global oil price. The figure was weaker than the

forecast of -2.6%.

     - The prices of oil and gas extraction, fuel processing as well as prices

in the chemical manufacturing sectors fell 35.7%, 9.0% and 3.0%, respectively,

accounting for nearly 60% of the total PPI decline.

     - The PPI was -1.3% m/m, compared to -1.0% in March-Feb.

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

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

[TOPICS: MAQDS$,MAUDR$,MAUDS$,M$A$$$,M$Q$$$,M$U$$$,MT$$$$]