CPI Inflation Steady in East Asia, Despite PPI Increasing
Skerdian Meta • 1 min read
Inflation has been increasing since the pandemic started two years ago, when it should have declined due to lockdowns and restrictions all over the world. But in the last few months, it has absolutely surged in the western world, as the headline consumer price index (CPI) increased to8.3% in the US while in the UK it jumped to 9.5%.
This is due to the price hike in raw materials and food, which has translated into higher producer prices (PPI), most of which have been passed to the consumer, while some have lowered business profits. Although in China and Japan the CPI consumer inflation remains stable, around normal levels, despite surging PPI, this looks strange, when in Europe and the US we are seeing all consumer prices surge, lowering life quality.
Chinese PPI and CPI Inflation Report
- China May CPI YoY 2.1% vs 2.2% expected
- April CPI MoM was 2.1%
- CPI May MoM -0.2% vs -0.3% expected
- April CPIP MoM was +0.4%
- China PPI May YoY 6.4% vs6.4% expected
- PPI MoM April was 8.0%
- PPI May MoM 0.1%
Meanwhile, China’s factory-gate inflation cooled to its slowest pace in 14 months in May, official data showed on Friday, depressed by weak demand for steel, aluminum, and other key industrial commodities due to tight COVID-19 curbs. The producer price index (PPI) rose 6.4% year-on-year, the National Bureau of Statistics (NBS) said on Friday, after an 8.0% rise in April and in line with forecasts in a Reuters poll. It was the weakest reading since March 2021.
Japan PPI Inflation
- PPI for May YoY comes in at +9.1% against +10.0% expected
- PPI April YoY was +9.5%
- May PPI MoM comes in at 0.0% vs +0.6% expected
- Previous PPI MoM+1.1%