Description
China's Producer Price Index (PPI) is calculated and published by the National Bureau of Statistics (NBS). The PPI reflects the trend and magnitude of changes in the overall ex-factory prices of all industrial products sold for the first time within a certain period. It serves as a key indicator of corporate cost pressures and inflation trends in China.
The Year-on-Year (YoY) growth rate of the PPI is typically used to observe changes in corporate costs and predict future movements in the Consumer Price Index (CPI). A higher YoY PPI indicates rising corporate costs, which may be passed on to consumers, pushing the CPI higher. Conversely, a lower YoY PPI suggests declining corporate costs, reducing CPI pressure.
The PPI survey in China covers 39 major industrial sectors, involving 186 survey categories and over 4,000 products (including more than 9,500 product specifications). PPI data is typically released in the middle of each month, providing information on price changes from the previous month.
Note: The difference between Seasonally Adjusted (SA) and Not Seasonally Adjusted (NSA) data lies in the fact that SA data is adjusted to eliminate the effects of seasonal patterns, providing a clearer view of long-term trends and underlying economic conditions.