PPI 2016

For the whole of 2016, China’s producer price index (PPI) dropped 1.4 percent, recovering from a 5.2-percent decline in 2015, according to NBS data.

China's producer price growth beat market expectations in December supported by rising commodity prices and robust demand. The PPI, rose 5.5 percent year-on-year in December, the highest in more than five years.

The growth rate picked up from 3.3 percent in November and 1.2 percent in October.

Under pressure from a downturn in the broader economy, the PPI had been trapped in negative territory for 54 months before returning to growth in September.

For the whole of 2016, the purchasing prices for manufactured goods were down by 2.0 percent, according to NBS data.

In December alone, the purchaser price index for manufactured goods increased 1.9 percent month-on-month, an increase of 6.3 percent year-on-year.

The year-on-year purchaser price indices for ferrous metal materials increased 15.1 percent, non-ferrous metal materials and wires went up by 14.9 percent, fuel and power increased 10.1 percent.

Notes:

Producer Price Index (PPI) for manufactured goods consists of producer price index and purchaser price index.

The industrial producer price index reflects the trend and level of prices change when the products are sold for the first time.

The industrial purchaser price index reflects the trend and level of prices change for the products purchased by the industrial enterprises as intermediate inputs.