MNI DATA IMPACT: China June CPI Standing At 15-month High

     BEIJING (MNI) - China's CPI remained at 2.7% y/y in June, unchanged from

May's 15-month high. The result was in line with an MNI survey of economists,

which projected the headline number to come in at 2.7%.

     Here are other points of note from the data released by the National Bureau

of Statistics on Wednesday:

     --The y/y CPI gain was mainly due to higher food prices which rose 8.3%

y/y. Fresh fruit prices grew 42.7% y/y, higher than April's 26.7% gain mainly

due to extreme weather. The price of pork continued to accelerate to 21.1% y/y,

from May's 18.2% gain. These two categories have driven up the headline CPI by

0.71 and 0.45 percentage points respectively.

     --CPI growth decreased 0.1% on a monthly basis, compared with May's 0.0%.

Food prices fell 0.3% m/m, reversing the 0.2% gain in May. At the same time,

fruit prices are at a historical high despite the new seasonal supply, the NBS

said.

     - The producer price index (PPI) rose 0.0% y/y, down from May's 0.6%,

missing the 0.2% forecast by an MNI survey. The PPI fell 0.3% monthly, compared

with a 0.2% m/m gain in May.

     - Ex-factory prices of oil, coal and other fuel processing, oil and gas

exploration, and ferrous metal processing reversed the gains in May, falling

1.9%, 1.8% and 0.5% y/y. Car manufacturing continued to decline and fell 0.9%

y/y from May's 0.7% fall.

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

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

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