China's consumer inflation eased to a 14-month low in May, dragged down by moderating gains in pork and food costs, while the decline in prices at the factory gate deepened to a four-year low as oil prices slumped, official data showed Wednesday.
AAA says the national average for gasoline was $2.07 Wednesday, compared to $2.75 a year ago. The figure added up to an overall 0.1 percent index increase over the past 12 months, it noted.
"We believe falling CPI inflation and continued PPI deflation will provide Beijing with more space to implement policy stimulus to offset the impact of Covid-19 on the economy", economists at Nomura International (Hong Kong) Ltd. wrote in a report. Energy prices continued to fall in May, dropping 1.8 percent on the month, and 18.9 percent year-on-year.
Forecasters are expecting May's inflation rate to have slowed to 2.6%, a drop from last month's 3.3% and a almost 3% decrease since January. Motor vehicle insurance fell a record 8.9% in May, while apparel fell 2.3% after a 4.7% drop in April. Over the past year, consumer prices are up 0.1 per cent and core prices are up 1.2 per cent.
The US stock market is growing steadily in early trading
Overnight sentiment bottomed two days before the S&P 500, and outperformance measured from that date was even more extreme. Friday's gains put the S&P 500 up more than 45% from a March 23 intraday low and less than 6% from its February 19 record.
The core CPI, which excludes the volatile costs of food and fuel, fell 0.1% in May after a 0.4% decline in April.
With global economies likely to see slow post-virus recoveries, China's foreign trade is expected to recover just as slowly in the long term, even as inflation and other indicators at home continue to improve.
The consumer price index declined 0.1 per cent last month, less than analysts expected but a sign that shoppers are continuing to hold back as the world's largest economy grapples with disruptions from the coronavirus pandemic.
Wen said the May PPI fell more than expected due to the impact of the COVID-19 epidemic on domestic enterprises, as well as the low global oil prices that dampened prices of production materials.