National Bureau of Statistics (NBS): PPI fell 0.4% MoM in April, with prices in some industrial sectors continuing to show a steady and improving trend.

According to data from the National Bureau of Statistics (NBS), in April 2025, China's consumer price index (CPI) decreased by 0.1% YoY. Specifically, prices in urban areas remained flat, while those in rural areas decreased by 0.3%. Food prices decreased by 0.2%, while non-food prices remained flat. Prices for consumer goods decreased by 0.3%, while service prices increased by 0.3%. On average from January to April, China's CPI decreased by 0.1% compared to the same period last year. NBS data also showed that in April 2025, China's producer price index (PPI) for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year. Dong Lijuan, the chief statistician of the NBS's Urban Department, interpreted the CPI and PPI data for April 2025: In April, the CPI increased by 0.1% MoM, reversing the 0.4% decrease in the previous month, and decreased by 0.1% YoY, with the decline remaining the same as the previous month. The core CPI increased by 0.2% MoM, reversing the flat trend in the previous month, and increased by 0.5% YoY, with the increase remaining stable. The PPI decreased by 0.4% MoM, with the decline remaining the same as the previous month, and decreased by 2.7% YoY, with the decline expanding by 0.2 percentage points compared to the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation is stable and resilient, various macro policies are working in synergy, high-quality development is advancing steadily, and prices in some areas are showing positive changes.

In April 2025, China's PPI for industrial products decreased by 2.7% YoY

In April 2025, China's PPI for industrial products decreased by 2.7% YoY and by 0.4% MoM. The purchase prices for industrial producers decreased by 2.7% YoY and by 0.6% MoM. On average from January to April, both the PPI for industrial products and the purchase prices for industrial producers decreased by 2.4% compared to the same period last year.

I. Year-on-Year Changes in Producer Prices for Industrial Products

In April, among the PPI for industrial products, prices for means of production decreased by 3.1%, contributing to a decrease of approximately 2.28 percentage points in the overall level of the PPI for industrial products. Specifically, prices for the mining industry decreased by 9.4%, prices for the raw material industry decreased by 3.6%, and prices for the processing industry decreased by 2.3%. Prices for means of subsistence decreased by 1.6%, contributing to a decrease of approximately 0.40 percentage points in the overall level of the PPI for industrial products. Specifically, food prices decreased by 1.4%, clothing prices decreased by 0.1%, prices for general daily necessities increased by 0.6%, and prices for durable consumer goods decreased by 3.7%.

Among the purchase prices of industrial producers, prices for fuel and power fell by 7.7%, prices for ferrous metal materials fell by 6.7%, prices for chemical raw materials fell by 4.1%, prices for agricultural and sideline products fell by 2.9%, prices for textile raw materials fell by 2.3%, and prices for building materials and non-metals fell by 1.4%; prices for non-ferrous metal materials and wires rose by 8.5%.

II. Month-over-Month (MoM) Changes in Industrial Producer Prices

In April, among the ex-factory prices of industrial producers, prices for means of production fell by 0.5%, contributing to a decrease of approximately 0.37 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, prices for the mining industry fell by 2.1%, prices for the raw material industry fell by 1.0%, and prices for the processing industry fell by 0.2%. Prices for means of subsistence fell by 0.2%, contributing to a decrease of approximately 0.05 percentage points in the overall level of ex-factory prices of industrial producers. Specifically, food prices fell by 0.1%, clothing prices rose by 0.3%, general daily necessities prices rose by 0.2%, and durable consumer goods prices fell by 0.7%.

Among the purchase prices of industrial producers, prices for fuel and power fell by 2.3%, prices for chemical raw materials fell by 0.7%, prices for ferrous metal materials fell by 0.6%, prices for building materials and non-metals fell by 0.4%, and prices for agricultural and sideline products and textile raw materials both fell by 0.2%; prices for non-ferrous metal materials and wires rose by 0.7%.

In April 2025, the MoM CPI shifted from decline to growth, with core CPI growth remaining stable

—Interpretation of CPI and PPI Data for April 2025 by Dong Lijuan, Chief Statistician of the Urban Department, National Bureau of Statistics (NBS)

In April, the Consumer Price Index (CPI) shifted from a 0.4% MoM decline in the previous month to a 0.1% MoM increase, with a 0.1% YoY decline, the same as the previous month. The core CPI shifted from flat to a 0.2% MoM increase, with a 0.5% YoY increase, maintaining stable growth. The Producer Price Index (PPI) for industrial producers fell by 0.4% MoM, the same as the previous month, and fell by 2.7% YoY, with the decline expanding by 0.2 percentage points from the previous month. Although international imported factors have had a certain downward impact on prices in some industries, China's economic foundation remains stable and resilient, with various macro policies working in synergy to advance high-quality development, leading to positive changes in prices in some areas.

I. The MoM CPI shifted from decline to growth, with a slight YoY decline, and core CPI growth remained stable

From a MoM perspective, the CPI shifted from decline to growth, with the increase exceeding the seasonal level by 0.2 percentage points, mainly driven by the rebound in food and travel service prices.Food prices rose 0.2% MoM, 1.4 percentage points higher than the seasonal level. Among them, beef prices increased by 3.9% due to factors such as reduced imports. As some regions entered the marine fishing moratorium period, the prices of marine fish rose by 2.6%. At the initial stage of new fruit availability, the seasonal supply of potatoes and fresh fruits decreased, leading to price increases of 4.7% and 2.2%, respectively. The prices of fresh vegetables and pork fell by 1.8% and 1.6%, respectively, with declines smaller than the seasonal level. Affected by the combined impact of recovering demand and holiday factors, travel service prices rebounded significantly. Prices of air tickets, vehicle rental fees, hotel accommodations, and tourism rose by 13.5%, 7.3%, 4.5%, and 3.1%, respectively, with increases all higher than the seasonal level, collectively contributing to a MoM rise in CPI of approximately 0.10 percentage points. Due to changes in international gold prices, the prices of domestic gold jewelry increased by 10.1%, contributing to a MoM rise in CPI of approximately 0.06 percentage points.

On a YoY basis, CPI declined slightly, mainly influenced by the decline in international oil prices. Energy prices fell 4.8% YoY, with the decline expanding by 2.2 percentage points from the previous month. Among them, gasoline prices fell by 10.4%, contributing to a YoY decline in CPI of approximately 0.38 percentage points, which was the main factor driving the YoY decline in CPI. Food prices fell by 0.2%, with the decline narrowing by 1.2 percentage points from the previous month, contributing to a decline in CPI of approximately 0.03 percentage points. Core CPI, excluding food and energy prices, rose by 0.5%, with the increase remaining stable. Among them, service prices rose by 0.3%, with the increase remaining the same as the previous month. Within services, the prices of housekeeping services, elderly care services, and education services rose by 2.5%, 1.4%, and 1.2%, respectively, with overall stable increases. The prices of industrial consumer goods excluding energy rose by 0.4%, contributing to a YoY rise in CPI of approximately 0.10 percentage points. Among them, the prices of gold jewelry rose by 35.8%, with the increase slightly expanding from the previous month. The prices of clothing and communication tools rose by 1.5% and 1.0%, respectively, with increases remaining basically stable. The prices of gasoline-powered passenger cars and new energy passenger cars fell by 4.6% and 3.4%, respectively, with declines both narrowing.

II. The MoM decline in PPI remained the same as the previous month, with prices in some industrial sectors continuing to show a stable and improving trend.

PPI fell by 0.4% MoM, with the decline remaining the same as the previous month. The main reasons for the decline in PPI this month are as follows: First, international imported factors influenced the downward trend in domestic related industry prices. Changes in the international trade environment led to a rapid decline in the prices of some international bulk commodities, affecting the decline in domestic related industry prices. Among them, the decline in international crude oil prices influenced the MoM decline in domestic oil-related industry prices. The prices of the oil and natural gas extraction industry fell by 3.1%, the prices of refined petroleum product manufacturing fell by 2.5%, and the prices of the chemical raw materials and chemical products manufacturing industry fell by 0.6%. The decline in international prices of non-ferrous metals such as aluminum, zinc, and copper influenced the respective declines of 2.4%, 1.6%, and 0.8% in the prices of domestic aluminum smelting, zinc smelting, and copper smelting.Prices in some export-oriented industries declined on a MoM basis, with the automobile manufacturing industry seeing a 0.5% decrease. The computer, communication, and other electronic equipment manufacturing industry, furniture manufacturing industry, and fabricated metal product industry all experienced a 0.2% decline in prices. Collectively, these 10 industries contributed to an approximate 0.24 percentage point MoM decrease in the Producer Price Index (PPI). Second, domestic energy prices declined seasonally. With the complete conclusion of the northern heating season, coal demand entered the traditional off-season, leading to a 3.3% MoM decrease in both coal mining and washing industry prices and coal processing prices. The low cost and strong substitution effect of new energy power generation, coupled with increased wind power output, resulted in a 0.3% MoM decrease in prices for the electricity, heat production, and supply industry. Collectively, these three industries contributed to an approximate 0.10 percentage point MoM decrease in PPI.

  China has intensified and expanded its macro policies, such as promoting consumption, accelerating the growth of high-tech industries, increasing demand in some sectors, and showing positive changes in prices in certain fields. First, the supply-demand relationship in some industries has improved, with narrowing price declines. Steady progress in infrastructure construction projects across regions and good implementation of staggered production schedules by cement enterprises have led to a narrowing of the YoY decline in prices for the ferrous metal smelting and rolling processing industry and the non-metallic mineral products industry by 1.4 and 1.0 percentage points, respectively, compared to the previous month. Policies promoting consumption and equipment updates continue to show effects, with increased demand for some consumer goods and equipment manufacturing products driving price rebounds in related industries. The YoY decline in prices for household washing machines narrowed by 0.3 percentage points compared to the previous month, while the YoY decline in prices for the food manufacturing industry and passenger NEVs narrowed by 0.2 percentage points each. The YoY decline in prices for electrical machinery and equipment manufacturing narrowed by 0.7 percentage points, and the YoY decline in prices for agriculture, forestry, animal husbandry, and fishery machinery manufacturing, as well as metal processing machinery manufacturing, narrowed by 0.2 percentage points each. Second, the development of high-tech industries has driven price increases in related sectors. The continuous cultivation and growth of new quality productive forces, along with the deep integration of technological innovation and industrial innovation, have led to YoY price increases in related industries driven by the development of industries such as intelligent manufacturing and high-end equipment manufacturing. Prices for wearable smart device manufacturing increased by 3.0%, aircraft manufacturing prices rose by 1.3%, micro and special motor and component manufacturing prices increased by 1.2%, server prices rose by 1.0%, and ship and related equipment manufacturing prices increased by 0.8%. In addition, China has continued to promote trade diversification, with market expansion driving YoY price increases or narrowing price declines in some export-oriented industries. Prices for integrated circuit packaging and testing series increased by 2.7%, and prices for semiconductor device manufacturing equipment increased by 1.0%. The YoY decline in prices for tractor manufacturing, electronic device manufacturing, and the textile, clothing, and apparel industry narrowed by 1.2, 0.7, and 0.3 percentage points, respectively, compared to the previous month.