SHANGHAI, Jun. 11 (SMM) -- According to the NBS, CPI dropped more sharply than expected. Despite imports and exports rose on the YoY basis, economy should maintain downward track as the PPI was low. Falling goods prices should leave more room for China's economic growth.
China's May CCI was up 3.0% YoY, but the PPI dropped 1.4%, a decline for the third consecutive month. Domestic fixed assets investment growth fell for the sixth month to 20.1%, while investments in the property sector grew 18.5%, falling for the ninth consecutive month; domestic consumer goods retail sales were up 13.8%, and dropped for two months. China's inflationary pressure eased as showed by the economic data, and China's central bank's lowering interest rates is favorable for economic growth.
According to China Customs, domestic imports and exports in May were USD 343.58 billion, up 14.1%, higher than the record high USD 334.11 billion hit last November. Exports were USD 181.14 billion, up 15.3%; imports were USD 162.44 billion, up 12.7%. Imports and exports growth was extremely low in the first four months this year, and even turned out negative. Trade growth was much higher than expected, showing China's foreign trade turns around.
Eurozone finance minister agreed June 9th to inject extra EUR 100 billion to Spain to support its banking sector. Spain's government said the independent audit report released in a week will figure out how much capital they will need. In this context, risk appetite grew. The US dollar index plunged, pushing up base metal prices. Nonferrous metals are expected to continue rebounding recently.