Macro Flash

Macro Flash: China’s consumer and producer prices for June

In June 2021, China’s consumer prices fell by 0.4 percent month-on-month, translating into a 1.1 percent increase year-on-year, a decrease of 0.2 percentage points from the previous month. Industrial producer prices rose by 0.3 percent month-on-month resulting in a 8.8 rise on a year-on-year basis. The strong yearly increase in industrial prices is to a large extent the result of a low baseline with commodity prices moving well ahead above their pre-COVID levels.

Source: National Bureau of Statistics, Koyfin

Consumer prices

In June 2021, China’s consumer prices fell by 0.4 percent month-on-month, translating into a 1.1 percent increase year-on-year. Prices excluding food and energy were almost flat, falling by 0.1 percent month-on-month, translating into a year-on-year increase of 0.9 percent.

Urban prices fell by 0.4 percent month-on-month (+1.2 percent YoY) mirroring the same fall in rural prices (+0.7 percent YoY). Food prices fell by 2.2 percent (-1.7 percent YoY), Non-food prices remained flat (+1.7 percent YoY). Consumer goods prices fell by 0.6 percent (+1.1 percent YoY) and service prices fell by 0.1 percent (+1.0 percent YoY). 

Consumer prices by detailed category of goods and services


 Month-on-month ( % )Year-on-year ( % )
Consumer prices-0.41.1
  Urban areas-0.41.2
  Rural areas-0.50.7
  Consumer goods-0.61.1
Consumer prices ex. food and energy (Core CPI)-0.10.9
1. Food, tobacco and alcohol-1.4-0.4
  Food with oil0.27.7
  Fresh vegetables-2.30.1
  Meat products -7.6-19.5
Seafoods 0.114.2
  Fresh fruits-4.53.1
2. Clothing & Footwar-0.20.4
3. Housing services0.10.9
4. Daily necessities and services-0.20.3
  Household appliances-0.31.0
  Home service0.12.6
5. Transportation and communication0.15.8
  Fuel for transportation2.023.6
  Use and maintenance of vehicles0.01.3
  Communication devices-0.26.2
  Communication services-0.1-0.3
  Mail service0.00.0
6. Education, Culture and Entertainment-0.21.5
  Education 0.11.9
7. medical care0.00.3
  Chinese medicine0.21.5
  Western medicine0.0-0.8
  Medical services0.00.7
8. Other supplies and services0.1-0.9
Source: National Bureau of Statistics. Scope: The consumer price statistical survey covers 8 categories spanning over 268 basic items, including food, tobacco, alcohol, clothing, housing, daily necessities and services, transportation and communication, education, culture and entertainment, medical care, other supplies and services, consumed by urban and rural residents nationwide.

Producer prices

On a month-on-month basis, among the ex-factory prices of industrial producers, the price of means of production increased by 0.5% , which affected the overall increase of the ex-factory prices of industrial producers by about 0.36 percentage points. Among them, the price of mining and quarrying industry increased by 3.9% , the price of raw material industry increased by 0.2% , and the price of processing industry increased by 0.3% . The price of subsistence fell by 0.2% , affecting the overall level of factory prices for industrial producers to drop by about 0.05 %. Among them, the price of food fell by 0.5% , the price of clothing fell by 0.3% , the price of general daily necessities fell by 0.2% , and the price of consumer durables rose by 0.1% .

Among the purchasing prices of industrial producers, the price of fuel and power rose by 2.9% , the price of ferrous metal materials rose by 1.7% , the price of non-ferrous metal materials and wires rose by 0.7% , and the price of chemical raw materials rose by 0.1% .

Main data of industrial producer prices in June 2021

 Month-on-month ( % )Year-on-year ( % )
1. Ex-factory price of industrial producers0.38.8
  Means of production0.511.8
   Raw materials0.218.0
  Living materials-0.20.3
   General daily necessities-0.20.3
   Consumer durables0.1-0.6
2. Purchase price of industrial producers0.813.1
  Fuel and power2.922.8
  Ferrous metal materials1.727.7
  Non-ferrous metal materials and wires0.726.8
  Chemical raw materials0.117.1
  Wood and pulp0.37.4
  Building materials and non-metals0.85.7
  Other industrial raw materials and semi-finished products0.53.8
  Agricultural and sideline products-1.35.4
  Textile raw materials0.24.8
3. Ex-factory prices of major industries  
Coal mining and washing industry5.237.4
Oil and gas extraction industry2.553.6
Ferrous metal mining and dressing industry5.452.6
Non-ferrous metal mining and dressing industry1.616.8
Non-metallic mining and dressing industry0.52.5
Agricultural and sideline food processing industry-0.94.3
Food manufacturing0.01.5
Liquor, beverage and refined tea manufacturing0.11.9
Tobacco products industry0.20.7
Textile industry0.03.8
Textile and Apparel, Apparel Industry-0.2-0.4
Wood processing and wood, bamboo, rattan, palm and grass products industry-0.10.8
Paper and Paper Products Industry0.07.8
Printing and recording media reproduction industry-0.30.9
Petroleum, coal and other fuel processing industry3.136.1
Chemical raw materials and chemical products manufacturing0.220.3
Pharmaceutical manufacturing-0.3-0.9
Chemical fiber manufacturing-0.817.0
Rubber and plastic products industry0.23.4
Non-metallic mineral products industry0.02.5
Ferrous metal smelting and rolling processing industry-0.734.4
Non-ferrous metal smelting and rolling processing industry-0.127.8
Metal products industry0.87.5
General equipment manufacturing0.41.4
Automotive Manufacturing0.2-0.4
Railway, shipbuilding, aerospace and other transportation equipment manufacturing0.00.4
Computer, communications and other electronic equipment manufacturing0.2-0.6
Electricity and heat production and supply industry-0.4-0.7
Gas production and supply industry-0.13.5
Water production and supply industry0.31.4
Source: National Bureau of Statistics