CITIC Securities Research Report pointed out that the future trend of PPI readings will be the focus of markets this year.
They will depend on the position of the inventory cycle and the effect of follow-up policies. The bottom of this year's PPI will appear this month or next month. The CPI in May (+0.2%) rebounded slightly year-on-year from the previous month, but continued to hover at a low level.
The decline in the prices of manufactured goods (household appliances, vehicles, communication tools, etc.) was still the main drag of the core CPI. This month, service prices also fell to a certain extent, and the core CPI fell back to 0.6% due to lack of support.
CITIC still maintains that the "low inflation" environment will continue to exist throughout the year.
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