China's Producer Price Index (PPI) for May 2024 has shown a noticeable deceleration in its downward trend, according to recently updated data. The PPI, which measures the average changes in prices received by domestic producers for their output, posted a -1.4% year-over-year change compared to the -2.5% observed in April 2024. This updated figure was released on June 12, 2024.
The previous indicator for April 2024 marked a significant -2.5% drop compared to the same month in the previous year. The recent data for May 2024, with a less pronounced decline of -1.4%, suggests a potential stabilization within the producer pricing environment in China.
This year-over-year comparison indicates that while deflationary pressures persist, they are easing. The recent trend reflects a slowing rate of price decreases, which may provide some optimism for producers and analysts monitoring China's economic landscape.
