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19 Jun 2025
China's Producer Prices Continue Deflationary Trend in May 2025
Keywords
China's industrial sector experienced persistent price declines in May 2025, with both producer and purchasing prices extending their downward trajectory, official data showed.
Key Figures
- Producer Price Index (PPI):
- Year-on-year (YoY): -3.3%
- Month-on-month (MoM): -0.4%
- Purchasing Price Index (PPIRM):
- YoY: -3.6%
- MoM: -0.6%
- January-May Averages:
- PPI: -2.6% YoY
- PPIRM: -2.6% YoY
I. Annual Price Changes (May 2025 YoY)
#Producer Prices
- Production Materials: -4.0% (contributing -2.98 percentage points to overall PPI decline)
- Mining & Quarrying: -11.9%
- Raw Materials: -5.4%
- Processing: -2.8%
- Consumer Goods: -1.4% (contributing -0.36 percentage points)
- Food: -1.4%
- Clothing: 0.0% (flat)
- General Consumer Goods: +0.6%
- Durable Consumer Goods: -3.3%
#Purchasing Prices
- Declines:
- Fuel & Power: -9.8%
- Ferrous Metals: -7.3%
- Chemical Raw Materials: -5.4%
- Agricultural Products: -2.6%
- Textile Raw Materials: -2.5%
- Building Materials & Non-metallics: -1.1%
- Increase:
- Non-ferrous Metals & Wires: +4.6%
II. Monthly Price Changes (May 2025 MoM)
#Producer Prices
- Production Materials: -0.6% (contributing -0.44 percentage points)
- Mining & Quarrying: -2.5%
- Raw Materials: -0.9%
- Processing: -0.3%
- Consumer Goods: 0.0% (flat)
- Food: -0.1%
- Clothing: +0.2%
- General & Durable Goods: +0.1% (each)
#Purchasing Prices
- Declines:
- Fuel & Power: -2.1%
- Chemical Raw Materials: -1.2%
- Ferrous Metals: -0.6%
- Textile Raw Materials: -0.4%
- Building Materials & Non-metallics: -0.2%
- Non-ferrous Metals & Wires: -0.1%
- No Change:
- Agricultural Products: 0.0%
Analysis
The data reflects ongoing deflationary pressures in China's industrial sector, driven by:
1. Weak commodity demand (notably in mining and fuel-related sectors).
2. Mixed consumer goods performance, with durable goods facing significant declines (-3.3% YoY).
3. Isolated bright spots, such as non-ferrous metals (+4.6% YoY) and select consumer categories.
| China's Producer Price Index (PPI) Key Data for May 2025 | |||
| MoM Change % | YoY Change % | Jan-May YoY Change % | |
| I. Producer Price Index (PPI) | -0.4 | -3.3 | -2.6 |
| Production Materials | -0.6 | -4.0 | -3.0 |
| Mining and Quarrying | -2.5 | -11.9 | -8.2 |
| Raw Materials | -0.9 | -5.4 | -3.0 |
| Processing | -0.3 | -2.8 | -2.6 |
| Consumer Goods | 0.0 | -1.4 | -1.4 |
| Food | -0.1 | -1.4 | -1.5 |
| Clothing | 0.2 | 0.0 | -0.1 |
| General Consumer Goods | 0.1 | 0.6 | 0.7 |
| Durable Consumer Goods | 0.1 | -3.3 | -3.1 |
| II. Industrial Purchasing Price Index | -0.6 | -3.6 | -2.6 |
| Fuel & Power | -2.1 | -9.8 | -6.9 |
| Ferrous Metals | -0.6 | -7.3 | -7.9 |
| Non-ferrous Metals & Wires | -0.1 | 4.6 | 9.1 |
| Chemical Raw Materials | -1.2 | -5.4 | -4.2 |
| Timber & Pulp | -0.5 | -3.9 | -2.9 |
| Building Materials & Non-metallics | -0.2 | -1.1 | -1.8 |
| Other Industrial Raw Materials & Semi-finished Goods | -0.2 | -1.8 | -1.6 |
| Agricultural Products | 0.0 | -2.6 | -3.1 |
| Textile Raw Materials | -0.4 | -2.5 | -2.0 |
| III. Major Industry PPI | |||
| Coal Mining & Washing | -3.0 | -18.2 | -14.1 |
| Petroleum & Natural Gas Extraction | -5.6 | -17.3 | -9.0 |
| Ferrous Metal Mining & Dressing | -0.9 | -7.0 | -10.3 |
| Non-ferrous Metal Mining & Dressing | 0.8 | 14.8 | 18.9 |
| Non-metal Mining & Dressing | -0.4 | -0.6 | -0.3 |
| Agricultural & Sideline Food Processing | 0.0 | -2.8 | -3.6 |
| Food Manufacturing | -0.3 | -1.0 | -1.3 |
| Alcohol, Beverages & Refined Tea Manufacturing | 0.1 | -0.6 | -0.9 |
| Tobacco Products | 0.0 | 0.4 | 0.5 |
| Textile Industry | -0.2 | -2.6 | -2.2 |
| Apparel & Clothing | 0.2 | -0.2 | -0.2 |
| Wood Processing & Related Products | -0.5 | -3.0 | -2.4 |
| Paper & Paper Products | -0.6 | -3.6 | -3.1 |
| Printing & Record Media Reproduction | -0.3 | -1.6 | -1.5 |
| Petroleum, Coal & Other Fuel Processing | -3.1 | -14.7 | -9.1 |
| Chemical Raw Materials & Chemical Products Manufacturing | -1.2 | -5.3 | -4.1 |
| Pharmaceutical Manufacturing | -0.5 | -2.0 | -1.4 |
| Chemical Fiber Manufacturing | -1.3 | -7.5 | -5.2 |
| Rubber & Plastic Products | -0.3 | -1.8 | -1.6 |
| Non-metallic Mineral Products | -1.0 | -2.7 | -3.0 |
| Ferrous Metal Smelting & Rolling | -1.0 | -10.2 | -10.0 |
| Non-ferrous Metal Smelting & Rolling | -0.1 | 2.3 | 7.3 |
| Metal Products | -0.1 | -2.3 | -2.2 |
| General Equipment Manufacturing | -0.2 | -1.3 | -1.3 |
| Automobile Manufacturing | 0.0 | -3.1 | -3.2 |
| Railway, Shipbuilding, Aerospace & Other Transport Equipment | 0.0 | 0.0 | 0.1 |
| Computers, Communications & Other Electronic Equipment | 0.1 | -2.2 | -2.1 |
| Electricity & Heat Production & Supply | 0.5 | -1.5 | -1.4 |
| Gas Production & Supply | -1.0 | -0.1 | -1.0 |
| Water Production & Supply | 0.0 | 0.7 | 1.0 |
Notes
1. Indicator Explanations
The Industrial Producer Price Index comprises:
- Producer Price Index for Industrial Products (PPI): Reflects the trend and magnitude of price changes for industrial products at their first sale (ex-factory price).
- Purchasing Price Index for Industrial Producers (PPIRM): Measures price changes of intermediate inputs purchased by industrial enterprises.
2. Statistical Coverage
- PPI Survey: Covers 1,300+ product categories across 40 major industrial sectors.
- PPIRM Survey: Tracks 800+ product categories under 9 major input classifications (e.g., raw materials, fuel).
3. Survey Methodology
Data is collected through a combination of key-enterprise surveys and representative sampling, covering over 40,000 Chinese industrial enterprises.
4. Statistical Standards
Industrial sector classifications adhere to the "Industrial Classification for National Economic Activities" (GB/T 4754-2017).
Disclaimer: Blooming reserves the right of final explanation and
revision for all the information.