May CPI and PPI in China down 1.4 and 7.2% respectively

Posted by Aliuser on Jun 10, 2009 in China Import and Export

Concerns over possible deflation have been shadowing China as consumer prices fell for four straight months.

The slightly narrowed decline signaled signs of a sustained economic recovery prompting economists to be optimistic about future CPI trends.

China’s consumer price index (CPI) in May fell 1.4 percent year on year, the National Bureau of Statistics (NBS) announced. This marks the fourth consecutive monthly decline since the index dropped 1.6 percent in February, the first fall since October 2002. The decline was 0.1 percentage points lower than the April level.

The producer price index (PPI), which measures inflation at the wholesale level, fell for the third straight month, dropping 7.2 percent year-on-year in May, the NBS said. The decline was in tune with market expectation.