China's PPI turned from falling to rising in August, with the year-on-year increase expanding to 3.8%

China News Service, Beijing, September 9 (Reporter Wang Enbo) The National Bureau of Statistics of China announced on the 9th that due to factors such as the upward transmission of international commodity prices and the increase in demand in some industries driven by domestic industrial transformation and upgrading, China's industrial producer price index (PPI) in August increased from a month-on-month decrease of 0.7% to an increase of 0.4%, and the year-on-year increase expanded to 3.8%, both showing positive growth.

Dong Lijuan, chief statistician of the Urban Department of the National Bureau of Statistics, analyzed that the rise in international crude oil and non-ferrous metal prices drove prices in China's related industries to rise month-on-month in August. Among them, the prices of oil extraction, refined petroleum product manufacturing, and organic chemical raw material manufacturing increased by 10.4%, 4.1%, and 0.9% respectively. The prices of non-ferrous metal smelting and rolling processing industries increased by 0.8%. The four industries together affected the month-on-month increase in PPI by about 0.31 percentage points.

At the same time, industrial transformation and upgrading have led to increased demand in some industries and higher prices month-on-month. Among them, the manufacturing prices of electronic circuits increased by 3.5% month-on-month, the manufacturing prices of virtual reality equipment increased by 1.9%, and the manufacturing prices of service consumption robots increased by 0.3%; the prices of biomass fuel processing and comprehensive utilization of waste resources both increased by 0.3%.

From a year-on-year perspective, China's PPI growth rate in August expanded by 0.3 percentage points from the previous month. Among them, the coal mining and washing industry increased by 26.6%, the non-ferrous metal smelting and rolling processing industry increased by 20.8%, and the oil and natural gas mining industry, petroleum coal and other fuel processing industry, chemical raw materials and chemical products manufacturing industry, electrical machinery and equipment manufacturing industry, computer communications and other electronic equipment manufacturing industry prices increased to varying degrees. The total impact of these seven industries on PPI increased by approximately 4.24 percentage points year-on-year, and the upward impact increased by 0.37 percentage points from the previous month.

Pang Ming, a member of the China Chief Economist Forum, pointed out that the recovery of China's PPI benefited from the phased improvement in the supply and demand relationship in some upstream industries, as well as the imported impact of fluctuations in international commodity prices, and also reflected the resilience of industrial enterprises in cost control and efficiency restoration. Although the increase was limited, PPI maintained positive growth, indicating that the prosperity of China's industrial production has improved.