China’s consumer price index came in at 1.2% year-over-year for May, matching April’s reading but falling short of the 1.3% economists had penciled in. On a month-over-month basis, prices actually slipped 0.1%.
The producer price plot twist
While consumer prices underwhelmed, China’s producer price index surged 3.9% year-over-year in May. That’s the highest reading since July 2022, driven primarily by rising costs in non-ferrous metals like copper, aluminum, and nickel.
Core CPI, which strips out volatile food and energy components, grew 1.1% annually. That figure eased slightly from prior months, suggesting the underlying demand picture in China remains tepid despite headline-grabbing factory gate inflation.
Iran tensions cool, and so do energy costs
