CPI shows structural rise, PPI shows a small decline

In 2019, all regions and departments earnestly implement the decision-making and deployment of the Party Central Committee and the State Council, adhere to the general tone of seeking progress while maintaining stability, and take a series of policies and measures to coordinate efforts to promote production, ensure supply, stabilize prices and benefit people's livelihood in view of the new situation and changes in the price field, especially the substantial increase in pig prices, so as to ensure the overall stability of the price situation Fixed.

The price structure of the consumer sector rose before the low and after the high monthly gains. In 2019, CPI rose 2.9%, lower than the expected target of 3%, 0.8 percentage points higher than the previous year. After March, driven by the rapid rise in food prices, CPI growth gradually expanded, reaching 4.5% year-on-year in November; in December, affected by the fall in pork prices, CPI was flat on a month-on-month basis, stable at 4.5% year-on-year. Rising prices of pork and fresh fruit have pushed up food prices. In 2019, food prices rose by 9.2%, 7.4 percentage points higher than the previous year, affecting CPI growth by about 1.81 percentage points, accounting for 62.4% of the total CPI growth, which is the main reason for CPI growth. In food, the price of meat, especially pork, has increased a lot. Affected by the epidemic situation and cyclical factors in Africa, the price of pork rose rapidly from March 2019 after 25 months of year-on-year decline. In November, the price rose by 1.1 times, with an average annual increase of 42.5%, affecting the increase of food price by about 5.04 percentage points, accounting for more than half of the increase of food price. At the end of 2019, under the influence of a series of policies and measures to ensure supply and price stability, the production of pigs changed positively, and the shortage of pork supply was relieved. Non food prices fell back. In 2019, non food prices rose 1.4%, 0.8 percentage points lower than the previous year, affecting CPI growth of about 1.09 percentage points.

PPI decreased slightly due to the low price in the production field. In 2019, PPI increased by 3.5% from the previous year to decreased by 0.3%. Among them, the price of means of production decreased by 0.8%, which affected the decline of PPI by about 0.57%, which was the main reason for the decline of PPI; the price of means of living increased by 0.9%, which affected the increase of PPI by about 0.24%. The price of oil related industries fluctuated substantially. In 2019, the overall international crude oil price will rise first and then fall, and the price of domestic related industries will fluctuate accordingly. The price of oil and gas exploration industry fluctuated from - 17.9% to 10.1% year on year, with an average annual decline of 3.6%. The price of oil, coal and other fuel processing industry fluctuated from - 12.0% to 4.2% year on year, with an average annual decline of 3.5%. Affected by this, the prices of downstream industries such as chemical raw materials and chemical products manufacturing, chemical fiber manufacturing, rubber and plastic products manufacturing have declined to varying degrees. The upstream and downstream price trends of metal related industries are differentiated. In 2019, the price of upstream mining industry will rise while the price of downstream processing industry will fall. Prices in other industries are relatively stable. In 2019, all regions and departments earnestly implement the decision-making and deployment of the Party Central Committee and the State Council, adhere to the general tone of seeking progress while maintaining stability, and take a series of policies and measures to coordinate efforts to promote production, ensure supply, stabilize prices and benefit people's livelihood in view of the new situation and changes in the price field, especially the substantial increase in pig prices, so as to ensure the overall stability of the price situation fixed.

The price structure of the consumer sector rose before the low and after the high monthly gains. In 2019, CPI rose 2.9%, lower than the expected target of 3%, 0.8 percentage points higher than the previous year. After March, driven by the rapid rise in food prices, CPI growth gradually expanded, reaching 4.5% year-on-year in November; in December, affected by the fall in pork prices, CPI was flat on a month-on-month basis, stable at 4.5% year-on-year. Rising prices of pork and fresh fruit have pushed up food prices. In 2019, food prices rose by 9.2%, 7.4 percentage points higher than the previous year, affecting CPI growth by about 1.81 percentage points, accounting for 62.4% of the total CPI growth, which is the main reason for CPI growth. In food, the price of meat, especially pork, has increased a lot. Affected by the epidemic situation and cyclical factors in Africa, the price of pork rose rapidly from March 2019 after 25 months of year-on-year decline. In November, the price rose by 1.1 times, with an average annual increase of 42.5%, affecting the increase of food price by about 5.04 percentage points, accounting for more than half of the increase of food price. At the end of 2019, under the influence of a series of policies and measures to ensure supply and price stability, the production of pigs changed positively, and the shortage of pork supply was relieved. Non food prices fell back. In 2019, non food prices rose 1.4%, 0.8 percentage points lower than the previous year, affecting CPI growth of about 1.09 percentage points.

PPI decreased slightly due to the low price in the production field. In 2019, PPI increased by 3.5% from the previous year to decreased by 0.3%. Among them, the price of means of production decreased by 0.8%, which affected the decline of PPI by about 0.57%, which was the main reason for the decline of PPI; the price of means of living increased by 0.9%, which affected the increase of PPI by about 0.24%. The price of oil related industries fluctuated substantially. In 2019, the overall international crude oil price will rise first and then fall, and the price of domestic related industries will fluctuate accordingly. The price of oil and gas exploration industry fluctuated from - 17.9% to 10.1% year on year, with an average annual decline of 3.6%. The price of oil, coal and other fuel processing industry fluctuated from - 12.0% to 4.2% year on year, with an average annual decline of 3.5%. Affected by this, the prices of downstream industries such as chemical raw materials and chemical products manufacturing, chemical fiber manufacturing, rubber and plastic products manufacturing have declined to varying degrees. The upstream and downstream price trends of metal related industries are differentiated. In 2019, the price of upstream mining industry will rise while the price of downstream processing industry will fall. Prices in other industries are relatively stable.