Stagnant consumer prices and continued declines in producer prices in China continued in May.
The National Bureau of Statistics of China (NBS) on Monday announced data on price increases in the country for May 2025.
According to the data, the Consumer Price Index dropped 0.1% from the same period last year, while the Producer Price Index fell 3.3%.
The ongoing decline in consumer and producer prices continued to fuel deflationary trends.
Consumer prices decreased by 0.1% year-on-year in May, while core inflation, excluding food and energy prices, increased by 0.6%.
During this period, food prices increased by 0.4%, while non-food prices remained unchanged.
Consumer product prices decreased by 0.5%, while service prices increased by 0.5%.
The CPI has remained below 1% since March 2023.
The stagnation in consumer prices has led to continued concerns about deflation.
The CPI had only increased by 0.2% annually in 2023 and 2024.
The Chinese government lowered its inflation target from 3%, which it had set since 2004, to 2% this year due to the ongoing deflationary trend.
The producer price index (PPI) fell in May 2025, continuing its downward trend that began in October 2022.
The decline in the PPI that started in the fourth quarter of 2022 continued into 2023 and 2024.
The index fell by 3% in 2023 and by 2.2% in 2024.
By Emre Aytekin and Gokhan Ergocun in Beijing
Anadolu Agency
energy@aa.com.tr