RTTNews - Consumer prices in China were down 1.4 percent on year in May, the National Bureau of Statistics said on Wednesday, falling for the fourth straight month.
The data was roughly in line with analyst expectations for a 1.3 percent annual decline following the 1.5 percent fall on year in April.
Food prices were down 0.6 percent on year, the data showed, while non-food prices fell 1.7 percent. Excluding food and energy, inflation was down 1.3 percent.
Among the individual components, grain was up 5.0 percent on year, while meat and poultry eased 15.5 percent, eggs added 3.4 percent, fresh vegetables jumped 22.2 percent, fresh fruit soared 13.6 percent, tobacco and alcohol were up 1.4 percent, transportation equipment fell 2.2 percent, vehicle fuel and components were down 6.7 percent, telecommunications equipment shed 18.8 percent and residential water, electricity, fuel lost 3.6 percent.
On a monthly basis, inflation eased 0.3 percent.
The NBS also said the producer prices plummeted 7.2 percent on year - worse than forecasts that had called for a decline of 6.9 percent on year after the 6.6 percent annual decline in the previous month.
Producer prices are unlikely to bounce back in the near future, the NBS said in a statement on its Web site, since a glut of industrial products is expected to persist in the short term.
It was the sixth consecutive month of decline.
Following the release of China's consumer price and producer price reports for the month of May, the Chinese yuan surged up to a 2-day high of 6.8331 against the US dollar in early Asian deals on Wednesday. On the upside, the yuan may likely target the 6.831 level. At Tuesday's North American close, the dollar-yuan pair was worth 6.8364.
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