AI Data Insight
In May 2026, China's monthly PPI for consumer goods fell to 99.1, widening the decline from 99.2 in the previous month, highlighting persistently sluggish domestic demand. Although international commodity prices pushed the overall PPI up by 3.9% year-on-year, upstream costs are struggling to pass through to the mid- and downstream, exacerbating the price divergence between producer and consumer goods. Moving forward, if policies to expand domestic demand fail to yield significant results, mid- and downstream corporate profits will face severe challenges.