Consumer prices rise, producer prices fall in China

The decline in producer prices in China accelerated in May, reaching the highest level in seven years. Producer prices, on the other hand, continued to decline, falling 4.6 percent compared to the same period last year. According to China’s National Bureau of Statistics, China’s consumer price index increased 0.2 percent in May from a year earlier. Economists had expected a 0.3 percent increase after a two-year low of 0.1 percent in April. Monthly prices fell 0.2 percent, while economists had forecast a 0.1 percent monthly decline. China’s producer deflation continued in May, with producer prices falling 0.9 percent from the previous month and 4.6 percent from the same period last year. This was the fastest decline since February 2016. Economists had expected producer prices to decline 4.3 percent annually in May.