Analysis of the May factory price data of industrial products

May National factory price of industrial products continued to expand Year-on-year decline, the chain continues to rise ――5 month of industrial products ex-factory prices to interpret May, by the main factory price decline in industrial products, the national factory price decline continued to expand.　　Compared with the same month last year, the factory price of industrial products fell 7.2%, raw materials, fuel, power purchase prices fell 10.4%, the decline was 0.6 and 0.8% respectively in April. From the composition look, production and means of subsistence prices continue to decline. May, the production cost of goods factory prices fell 8.8% from the same month last year, the decline was 0.7% larger than April, affecting the total factory price of industrial products down about 6.7%. The factory prices of extractive industries, raw materials and processing industries fell by 21.8%, 10.9% and 6.2% respectively in the same month last year, with a decline of 0.3, 0.6 and 0.8% respectively in April 2009. The cost of subsistence factory prices fell by 1.9% in the same month last year, affecting the factory price of industrial products fell about 0.5%.　　Among them, food prices fell 2.8%, clothing prices dropped slightly 0.2%, general commodity prices fell 0.8%, consumer durables prices fell by 3%, the decline than in April 2009, respectively, enlarged 0.1, 0.1, 0.4 and 0.3%. The main reasons for the continued expansion of industrial prices in May: First, the negative impact of the international financial crisis on the real economy is still increasing. Despite the various policy measures taken by Governments to deal with the financial crisis this year, some economic indicators have shown signs of stagnation, but overall the recession in the major economies continues and global demand remains sluggish. Despite a clear rebound in prices for some basic products over the past 2 months, it remains relatively low compared with last year's high, especially in the overall decline in industrial consumer prices.　　From the view of supply and demand, the situation of oversupply of industrial products in China is difficult to change in short term, which restrains the rapid pick-up of PPI in China. Second, although May 2009 industrial prices and raw materials, fuel, power purchase price rose 0.1% and 0.6% respectively than last month, but due to 2008 industrial prices in the first 8 months in the rapid "ramp" stage, May 2008 than April industrial products and raw materials, fuel,　　Power purchase prices rose 0.8% and 1.3% respectively, significantly higher than this year's May quarter-on-quarter increase, so the performance of May 2009 industrial prices Year-on-year decline continued to expand. Third, from the monthly chain price changes, since April this year, the first time the industrial prices from negative to positive has been 2 consecutive months, thus terminating the 7 consecutive months of the downward trend of the chain. Compared with last month's price ratio, April 2009 and May Industrial products ex-factory prices rose 0.2% and 0.1% respectively, raw materials, fuel, power purchase prices rose 0.8% and 0.6% respectively. It is noteworthy that oil and gas extraction, petroleum processing and coking,Chemical fiber, non-ferrous metal smelting and calendering processing industry, the main products prices have been 3 consecutive months of rising, showing a clear rebound trend. May Economic Operation Data consumer goods and services category Year-on-year price consumer goods and services category Year-on-year consumer prices fell 1.4% city prices fell 1.5% rural prices fell 1% consumer prices fell 1.4% service items down 1.3% non-food price decline 1.7% Food prices fell 0.6% food classes fell 0.6%. Food prices rose 5% oil prices fell 23.1% poultry and its products fell 15.5% eggs price rose 3.4% water products price rose 0.9% condiment price rose 3.8% fresh fruit price rose 13.6% pork price down 32% fresh vegetables price rose 22.2% Clothing category down 2.3% Clothing prices fell 2.5% tobacco and alcohol and supplies rose 1.4% price rose 0.2% alcohol price increase 3.3% household equipment supplies and maintenance services category up 0.5% consumer durables price down 1.8% household services and processing maintenance services price increases 5.5% health care and personal products rose 0.9% Western medicine prices rose 1% Chinese herbal medicines and proprietary Chinese medicine prices rose 1.9% health care services prices 1% traffic and communications decline 2.3% transport prices fell 2.2% vehicle fuel and spare parts prices fell 6.7% vehicle use and maintenance prices rose 1.4% urban transport prices increased 1% Urban transportation costs up 0.6% communication tools price drops 18.8% Entertainment education stationery and services Fall 0.8% learn miscellaneous kindergarten fees price rise 1.6% textbook reference books unpublished entertainment costs rose 1.5% tourism prices 2.6% cultural and recreational consumption and service prices down 10.1% Residential class fell 4.8% water, electricity and fuel prices fell 3.6% housing and decoration materials prices rose 0.1% rental price up 1.3%