The decline in food prices has pulled down the overall CPI: Food prices dropped by 0.4% year-on-year, which is an important factor affecting the year-on-year decline in consumer prices. Among them, the price of fresh vegetables decreased by 8.3%, mainly because the temperature rose in May, the growth cycle of vegetables shortened, the supply on the market increased, and the market supply was sufficient, resulting in the price drop. The price of eggs dropped by 3.5%, which might be due to the improvement of breeding techniques and the increase in inventory, resulting in a relatively abundant supply in the egg market. The price of grain dropped by 1.4%, which might be related to the increase in grain output, sufficient inventory and the reduction of costs in the market circulation link. Although the prices of livestock meat rose by 0.7% overall, the 3.1% increase in pork prices had a relatively small impact and could not offset the decline in the prices of other foods.
Non-food prices remained stable overall CPI: Non-food prices remained unchanged year-on-year, having a relatively small impact on the year-on-year changes in consumer prices. Among each subcategory, the price of transportation and communication decreased by 4.3%, which might be due to factors such as the rapid renewal of transportation means, fierce market competition, and the reduction of communication costs caused by the development of communication technology. The prices of other goods and services, clothing, education, culture and entertainment, medical care, housing, daily necessities and services, etc. rose to varying degrees. To a certain extent, this offset the impact of the decline in transportation and communication prices, keeping non-food prices generally stable.
The decline in consumer goods prices has dragged down the overall CPI: Consumer goods prices dropped by 0.5% year-on-year, which had a significant impact on the year-on-year decline in consumer prices. Except for the decline in the prices of food consumer goods, the prices of other consumer goods such as daily necessities and services decreased by 0.8% month-on-month. This might be due to the abundant market supply and fierce industry competition, which led merchants to attract consumers through price reduction promotions.
The increase in service prices supported the overall CPI: Service prices rose by 0.5% year-on-year, which played a certain supporting role in the year-on-year changes in consumer prices. With the improvement of people’s living standards, the demand for various services is constantly increasing. For example, the growth in the demand for educational, cultural and entertainment services has driven up the related prices by 0.9%. Meanwhile, the price of healthcare services also rose by 0.3%, which might be related to the increase in medical costs, the improvement in the quality of medical services, and the increased emphasis on health by people.
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