The decline in pork prices has expanded, and in June, China's CPI remained unchanged year-on-year, leading to a decrease in prices
On the 10th, the National Bureau of Statistics of China released data showing that due to factors such as the widening decline in pork prices, the consumer price index of Chinese residents in June increased by 0.2% from the previous month and remained stable.
Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics, introduced that in June, food prices increased by 2.3% year-on-year in the CPI, an increase of 1.3 percentage points compared to the previous month. In the food industry, prices of fresh vegetables, potatoes, fresh fruits, and poultry have increased significantly, ranging from 4.3% to 10.8%; The price of pork decreased by 7.2%, an increase of 4.0 percentage points from the previous month.
In that month, non food prices decreased by 0.6% year-on-year from the same period last month. In non food products, service prices have increased by 0.7%, with a decrease of 0.2 percentage points; The price of industrial consumer goods decreased by 2.7%, with a decrease of 1.0 percentage point. Among them, energy prices decreased by 9.3%, and the price of industrial consumer goods after deducting energy decreased by 0.5%, all of which showed an expansion in the decline.
Pang Ming, Chief Economist and Director of Research at JLL Greater China, analyzed that the year-on-year CPI in June changed from an increase to a plateau, mainly due to the widening decline in pig prices caused by the off-season of consumption and oversupply, the decline in service price increases, and the impact of the Industrial Producer Price Index on the decline in industrial consumer goods prices. Considering the rapid rise in pork prices last summer, the trend of food prices and CPI in the third quarter may still be under pressure due to the drag of pork prices.
From a month on month perspective, the CPI in June decreased by 0.2%, the same decrease as last month. Among them, food prices decreased by 0.5%, which narrowed by 0.2 percentage points compared to the previous month. In terms of food, due to the influence of high temperature and rainy weather, the price of fresh vegetables has increased by 2.3% from a decrease of 3.4% last month; The overall supply of other food is sufficient, with prices mostly decreasing. Non food prices decreased by 0.1%, the same decrease as last month.
The Bank of China Research Institute stated that the impact of China's current low inflation should be viewed rationally. Lower inflation levels leave more and greater room for macroeconomic policies to stabilize growth, employment, and prices. China's monetary policy will not undergo a sharp turn like other economies such as the United States and Europe to address high inflation issues, and may even cause financial market turbulence due to rapid interest rate hikes. The overall stability of the economic and financial market environment will be maintained under the guidance of prudent macroeconomic policies.