US consumer prices down for 3rd month in a row

US consumer prices down for 3rd month in a row

China's consumer price index rose 2.4 per cent from a year earlier, NBS said in a separate statement, compared with a 3.3 per cent increase in April and a 2.7 per cent rise estimated by economists. Over the past year, consumer prices are up 0.1 per cent and core prices are up 1.2 per cent.

Nevertheless, lower energy prices were essentially countered by a 0.7 percent rise in food prices in May. Food price increases in May were led by an 81.7% rise in pork prices, compared with a 96.9% jump previously, the data showed.

Food inflation was widespread in April, but in May was mainly driven higher by prices for meats, poultry, fish and eggs, and the largest surge in beef prices ever, up 10.8 percent on the month.

Excluding food and energy, the core CPI rose 1.1 percent year on year in May. Clothing prices fell 2.3 per cent, third straight drop, and are down 7.9 per cent over the past year.

The market supply and demand situation has been further improved, said Dong Lijuan, a senior statistician at the bureau.

Inflation also came out in China.

CPI CHART-1

Cost inflation for transportation facilities edged up slightly by 0.1 percentage point to dip 1.9 percent year on year in May, partly due to the restoration of highway tolls across the country from May 6, according to Lu.

USA consumer prices dropped 0.1 percent in May, following a 0.8 percent fall seen in April.

The PPI has now seen four consecutive months of year-on-year declines.

Dong attributed the sharper annual PPI decline in May mainly to a higher comparison basis in the same period previous year.

Pan Gongsheng, vice governor of the People's Bank of China, said last week that the economic hit from the coronavirus pandemic was bigger than first expected and that more monetary and credit policy support was needed.

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