Producer Prices for the Industrial Sector for May 2018

In May 2018, Producer Price Index (PPI) for manufactured goods  increased 4.1 percent year-on-year, and increased 0.4 percent month-on-month.  The purchasing price index for manufactured goods increased 4.3 percent  year-on-year, and increased 0.3 percent month-on-month. On average from January  to May, the PPI increased 3.7 percent from the same period of the previous year,  and the purchasing price index for manufactured goods went up by 4.2 percent.

1. Year-on-Year Changes of Prices of Different Categories

The year-on-year change of producer prices for means of production  increased 5.4 percent, meaning 4.07 percentage points increase in the overall  price level. Of which, producer prices for mining and quarrying industry  increased 8.1 percent; that of raw materials industry increased 7.4 percent;  that of manufacturing and processing industry increased 4.4 percent. Producer  prices for consumer goods increased 0.3 percent year-on-year, meaning 0.06  percentage points increase in the overall price level. Of which, producer prices  for foodstuff and clothing increased 0.3 percent, that of commodities went up by 1.1 percent, and that of durable consumer goods went down by 0.7 percent.  

The year-on-year purchaser price indices for building materials and  non-metallic went up by 11.1 percent, wood and pulp increased 7.8 percent,  non-ferrous metal materials and wires went up by 7.6 percent, ferrous metal  materials increased 6.6 percent, fuel and power increased 5.5 percent,  agricultural and sideline products decreased 0.9 percent.

2. Month-on-Month Changes of Prices of Different Categories

The producer prices for means of production increased 0.5 percent  month-on-month, meaning 0.38 percentage points increase in the overall price  level. Of the total, producer prices for mining and quarrying industry increased  1.1 percent, that of raw materials industry increased 0.8 percent, that of  manufacturing and processing industry increased 0.3 percent,. Producer prices  for consumer goods remained unchanged month-on-month. Of which, producer prices  for foodstuff and clothing increased 0.1 percent, that of and durable consumer  goods decreased 0.1 percent, that of commodities remained unchanged.

The month-on-month purchaser price indices for building materials and  non-metallic increased 1.1 percent, wood and pulp went up by 0.9 percent, fuel  and power increased 0.7 percent, non-ferrous metal materials and wires increased  0.3 percent, agricultural and sideline products went down by 0.3 percent.   

Annotations:

1. Explanatory Notes

Producer  Price Index 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.

2. Statistical Coverage

The  statistical survey of industrial producer prices covers prices for over 20,000 products from 1638 subclasses; and the statistical surveys of industrial  purchaser prices cover prices for over 10,000 industrial products from over 900  subclasses.

3. Survey  Methods

Industrial producer prices are collected from combined surveys of key  businesses and typical businesses. The key businesses are those with their  annual revenue from principal activities over 20 million yuan, and the typical  businesses are those with less than 20 million yuan. The surveys cover about  50,000 industrial enterprises in over 400 cities across the  country.

4. Statistical Standard

Industrial Classification is based on the "Industrial Classification  for National Economic Activities" (GB/T4754-2017).