mandag 21. juni 2021

China Pushes Back Against Threat of Inflation

China’s government has suffered a setback in its campaign against inflation as consumer prices accelerated last month despite pressure on producers to keep commodity costs down. On June 9, the National Bureau of Statistics (NBS) reported that the consumer price index (CPI) for May rose 1.3 percent from a year earlier, quickening from the 0.9-percent pace the month before.

The increase was a sign that the government has had only partial success in keeping the surge in commodity prices from spilling over from production into the consumer market. While consumer price growth remained relatively mild, the producer price index (PPI) soared 9 percent in May after climbing 6.8 percent in April. The May mark was the highest monthly jump in factory gate prices since September 2008, reflecting a run-up in costs for commodities including oil, iron ore, copper and coal, the NBS said.

The bureau sought to downplay the PPI increase, arguing that one-third of the May rise was due to a "carryover effect" from April's results, so that only 6 percentage points of the May figure was actually "new." But the month-to-month gain in the PPI more than doubled in May from April to 1.6 percent, suggesting continued pressure from commodity costs.