Producer Prices for the Industrial Sector for December 2020

SHANGHAI, Jan 12 (SMM) — In December 2020, Producer Price Index (PPI) for manufactured goods dropped by 0.4 percent year on year and rose by 1.1 percent month on month. The purchasing price index for manufactured goods unchanged year on year and increased by 1.5 percent month on month. In 2020, the producer price index for manufactured goods decreased by 1.8 percent, and the purchasing price index for manufactured goods decreased by 2.3 percent over last year.

1. Year-on-Year Changes of Prices of Different Categories

Among the PPI for manufactured goods, the price of means of production decreased by 0.5 percent, 1.3 percentage points lower than that of last month, which affected the overall level of factory price of industrial producers to decrease by about 0.33 percentage point. Among them, the price of mining industry decreased by 0.4 percent, the price of raw material industry decreased by 1.6 percent, and the price of processing industry remained unchanged. The price of means of living decreased by 0.4 percent, 0.4 percentage point lower than that of the previous month, which affected the overall level of factory prices of industrial producers by about 0.11 percentage point. Among them, food prices rose by 0.9 percent, clothing and durable consumer goods prices fell by 1.8 percent, and general commodity prices fell by 0.4 percent.

Among the purchaser price index, the prices of non-ferrous metal materials and wires increased by 7.5 percent, the prices of ferrous metal materials increased by 6.1 percent, the prices of fuel and power decreased by 6.6 percent, and the prices of chemical raw materials decreased by 1.8 percent.

2. Month-on-Month Changes of Prices of Different Categories

Among the PPI for manufactured goods, the price of means of production rose by 1.4 percent, 0.7 percentage point higher than that of last month, which affected the overall level of producer prices to rise by about 1.05 percentage points. Among them, the price of mining industry increased by 3.3 percent, that of raw material industry increased by 2.6 percent, and that of processing industry increased by 0.8 percent. The price of means of living rose by 0.1 percent, the same as that of last month, which affected the rise of the total producer prices by about 0.04 percentage point. Among them, the price of food increased by 0.5 percent, the price of clothing decreased by 0.2 percent, the price of general daily necessities remained unchanged, and the price of durable consumer goods decreased by 0.3 percent.

The month-on-month purchaser price indices for non-ferrous metal materials and wires, ferrous metals materials, fuel and power, and chemical raw materials, respectively increased by 3.3, 2.6, 2.2 and 2.1 percent.