By CGTN's Xia Cheng

China's consumer price index (CPI) rose 1.5 percent year-on-year in May, according to figures released by the National Bureau of Statistics (NBS) on Friday. The expansion was a jump on April's increase of 1.2 percent. 

The NBS attributed the pick-up to higher non-food prices, which grew 2.3 percent year-on-year in May. Healthcare, education and housing prices also added to the increase, while food prices dropped 1.6 percent. Analysts say non-food prices will be the key element affecting inflation in the near future and the consumption upgrade will be in focus.

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Zhang Liqun, researcher in the Development Research Center of China's State Council, noted that the change of consumption structure or consumption upgrade will cause a supply shortage in certain products or services. That in turn will affect prices.

According to the NBS, the producer price index (PPI) rose 5.5 percent in May compared to the same period last year, cooling for a third consecutive month. The PPI rose 6.4 percent from a year ago in April, driven by persistent declines in iron ore and coal prices amid concerns over cooling demand.

"We can see the demand slows down, and the manufacturers are passive in stock replenishment, that will continue to weigh on PPI," said Sun Guangmei, research fellow at Zhuochuang Consultancy.