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China's June CPI up 2.5% year on year on low basis effect
Updated 11:45, 09-Jul-2022
CGTN

China's consumer price index (CPI), a main gauge of inflation, increased by 2.5 percent year on year in June, data from the National Bureau of Statistics (NBS) indicated on Saturday.

The figure beat an estimate on average of around 2.39 percent by 14 financial institutions including UBS Securities and China Merchants Securities. 

The year-on-year CPI increase in June, up by 0.4 percentage points from the previous month, was mainly due to the low base effect from last year, NBS senior statistician Dong Lijuan said. 

China's prices were generally stable thanks to the sufficient supply of essential livelihood commodities and effective pandemic prevention, Dong said.

In June, the price of the food, tobacco and alcohol category rose by 2.5 percent year on year, causing the CPI to rise by about 0.7 percentage points, the NBS data showed.

During the same period, the price of the meat category dropped by 4.7 percent, of which the price of pork dropped by 6.0 percent. Despite not reflecting June's CPI, China's hog prices are surging, which pushed the government to roll out curbing measures. 

Read more: 

China to step up supervision of hog futures market to tame pork price hikes

Among non-food items, gasoline and diesel prices rose by 33.4 percent and 36.3 percent, respectively, and air ticket prices rose by 28.1 percent. The prices increases have expanded, according to Dong.

On a yearly basis, China's producer price index (PPI) increased by 6.1 percent in June, a decrease of 0.3 percentage points from the previous month.

Affected by the global supply chain, the oil and gas extraction sector rose 54.4 percent, up 6.6 percentage points, in the month.

With the promotion of the resumption of work and production and the implementation of the policy ensuring supply and stabilizing prices, the supply chains of key industries have gradually stabilized, Dong said. 

The increasing scale of the PPI has been falling for six consecutive months since the beginning of this year, she said. 

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