China: Inflation falls to four-month low in May
June 9, 2015
In May, consumer prices fell 0.2% over the previous month, which matched the result tallied in April. The monthly reading mainly reflected a decline in prices for food and as well as for recreation, education and cultural articles.
Annual inflation declined from 1.5% in April to 1.2% in May. The print slightly undershot the 1.3% that market analysts had expected and represented a four-month low. As a result of the annual reading, the trend pointed downward in May, with annual average inflation falling from April’s 1.7% to 1.6% and marking the lowest rate since July 2010.
Meanwhile, the producer price index fell 4.6% in May over the same month last year (April: -4.6 year-on-year), which exceeded the 4.5% decline that market analysts had expected. The annual average variation of the producer price index inched down from minus 2.7% in April to minus 3.0% in May, which represented the lowest value since February 2010.