On August 9th, the National Bureau of Statistics released the national PPI (Ex-factory Price Index of Industrial Producers) data for July. In July, the PPI rose 9.0% year-on-year and 0.5% month-on-month. Among the 40 industrial sectors surveyed, 32 saw price increases, reaching 80%. “In July, affected by the sharp increase in the prices of crude oil, coal and related products, the price increase of industrial products expanded slightly.” said Dong Lijuan, senior statistician in the City Department of the National Bureau of Statistics.
From a year-on-year perspective, the PPI rose by 9.0% in July, an increase of 0.2 percentage points from the previous month. Among them, the price of means of production rose by 12.0%, an increase of 0.2%; the price of means of living rose by 0.3%, the same as the previous month. Among the 40 major industrial sectors surveyed, 32 saw price increases, an increase of 2 over the previous month; 8 declined, a decrease of 2.
“Short-term structural factors of supply and demand may cause PPI to fluctuate at a high level, and it is more likely that it will gradually decline in the future.” said Tang Jianwei, chief researcher of the Bank of Communications Financial Research Center.
“PPI is expected to be still at a high level of peaking year-on-year, but the month-on-month increase tends to converge.” Gao Ruidong, managing director and chief macro economist of Everbright Securities, analyzed.
He said that on the one hand, domestic demand-oriented industrial products have limited room for growth. On the other hand, with the implementation of the OPEC+ production increase agreement, coupled with the new crown pneumonia epidemic that repeatedly limits the intensity of offline travel, the imported inflationary pressure caused by rising oil prices is expected to slow down.