Official data on Wednesday showed that with the steady recovery of domestic demand and the continued increase in raw material prices, China's producer price increase in May accelerated to the highest level since September 2008.
According to the National Bureau of Statistics (NBS), the Chinese Producer Price Index (PPI), which measures the cost of goods at the entrance of factories, rose 9% year-on-year last month, higher than the 6.8% increase in April.
The carry-over effect contributed 3 percentage points to PPI growth, and the new price increase contributed 6 percentage points.
According to data from the National Bureau of Statistics, on a monthly basis, PPI rose by 1.6%, 0.7 percentage points faster than in April.
China's ex-factory prices resumed positive growth in January, which was the first time since the outbreak of the new coronavirus, achieving positive growth for the fifth consecutive month.
Dong Lijuan, a senior statistician at the National Bureau of Statistics, said that in May, the prices of international crude oil, iron ore and non-ferrous metals rose further, driving up the price of industrial products in my country.
In May, the PPI of the domestic oil and gas extraction industry rose by 1.7% month-on-month, and the increase was 1.3 percentage points higher than that in April.
In addition, as factories began to increase thermal coal reserves to cope with the peak summer power consumption, demand for this product surged, driving the PPI of the coal mining and washing industries to rise by 10.6% from the previous month.
According to data from the National Bureau of Statistics, in the first five months, PPI increased by an average of 4.4% year-on-year.
The PPI data was accompanied by the release of the consumer price index, which is the main indicator of inflation, which rose 1.3% year-on-year in May.
