China's PPI rose 5.7% year-on-year in October, but the month-on-month increase fell back

China News Service, Beijing, November 9 (Reporter Wang Enbo) China's National Bureau of Statistics announced on the 9th that in October, China's industrial producer price index (PPI) rose by 5.7% year-on-year, an increase of 0.7 percentage points from the previous month; the month-on-month increase fell by 0.5 percentage points to 0.7%.

Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, said that among the major industries, among the industries with year-on-year price increases, coal mining and washing industry increased by 36.6%, oil and natural gas mining industry, petroleum coal and other fuel processing industry, chemical raw materials and chemical products manufacturing industry increased by 35%, 29.9% and 16.4% respectively, gas production and supply industry increased by 7.9%, computer communications and other electronic equipment manufacturing industry increased by 5.9%, the increase was larger than last month.

From a month-on-month perspective, the rise in international energy prices drove prices in China's domestic oil and natural gas mining industry, and coal mining and washing industry prices to rise by 6% and 2.7% respectively. Affected by factors such as upstream basic energy price transmission and the release of demand for thermal coal and gas during the critical preparation period for peak winter, prices in the downstream refined petroleum product manufacturing, organic chemical raw material manufacturing, coal processing, gas production and supply industries all increased.

Dong Lijuan said that the above-mentioned six industries collectively affected the month-on-month increase in PPI by approximately 0.61 percentage points in October, accounting for more than 80% of the total increase.

In addition, the production capacity of some industries has been adjusted in an orderly manner, and the relationship between supply and demand has improved. Prices in the non-metallic mineral products industry have increased by 0.8% month-on-month. Prices in the automobile manufacturing industry have remained flat after falling for three consecutive months. Artificial intelligence continues to empower industrial transformation, driving increased demand and rising prices in related industries. Prices in the electrical machinery and equipment manufacturing industry, computer communications and other electronic equipment manufacturing industries have all increased by 0.1% month-on-month.

Pang Ming, a member of the China Chief Economist Forum, said that in the future, China's PPI will be more reflected in structural repair and improvement. The optimization of supply and demand relations in some industries, the management of inefficient competition, and the development of advanced manufacturing will continue to support the prices of related products; the prices of bulk commodities such as black, non-ferrous, and chemicals are still affected by external demand, international energy prices, and the global economic environment, and may be highly volatile. The foundation for a comprehensive recovery in industrial product prices needs to be further consolidated. (over)