Jul. 9, 2012 (China Knowledge) - China's producer price index (PPI), an indicator of the factory-gate prices of industrial products, fell 2.1% compared with the same month of 2011, representing the biggest YoY decline this year, said the National Bureau of Statistics
The PPI last month dropped 0.7% from May, reflecting a MoM decrease for the second consecutive month.
Last month, prices of production materials edged down 0.9% MoM or 2.9% from a year earlier. Prices of products in the mining sector decreased 2.9% YoY or 2.3% MoM. Prices of products in the raw materials fell 1.8% from the previous month or 3.0% YoY, and prices of products in the processing industry declined 2.9% YoY or 0.4% MoM.
Prices of consumer goods remained unchanged from the previous month but went up 0.7% compared with the corresponding period of last year. On year-on-year basis, there was a 1.3% rise in food prices, and a 2.1% increase in the price of clothing. Prices of daily consumer goods rose 0.9% YoY, but prices of consumer durables went down 1.2% YoY.
In June, the purchase prices of industrial producers fell 2.5% YoY or 0.8% MoM. The prices of nonferrous metal materials dropped 7.6% YoY or 1.1% MoM. The purchase prices of fuel and power were steady compared with the same month of 2011 but fell 1.6% from May.
In the first six months, the country's PPI dropped 0.6% YoY and the purchase prices of industrial producers fell 0.3%.