National Bureau of Statistics: PPI decreased month-on-month, and the year-on-year growth rate has slightly fallen back.

From a month-on-month perspective, the national PPI fell by 0.7%, with the decline expanding by 0.4 percentage points compared to the previous month. The main characteristics of the month-on-month PPI performance are as follows: First, input factors have caused a decline in the prices of related domestic industries. The prices in the petroleum extraction, refined petroleum products manufacturing, and organic chemical raw materials manufacturing sectors decreased by 11.8%, 8.4%, and 4.2%, respectively; the prices in the non-ferrous metal mining and selection industry, as well as the non-ferrous metal smelting and rolling processing industry, declined by 2.1% and 1.7%, respectively, with these five industries collectively contributing to a month-on-month PPI decrease of approximately 0.65 percentage points. Second, seasonal factors have influenced price reductions in certain industries. In July, high temperatures, rainfall, and typhoon weather were prevalent, slowing down construction project progress. Prices in the black metal smelting and rolling processing industry and non-metallic mineral product industry dropped by 0.8% and 0.5%, respectively; the increase in hydropower and wind power led to a price decrease of 10.3% and 3.9%, respectively, with these four industries collectively influencing a month-on-month PPI decrease of about 0.11 percentage points. Third, the transformation and upgrading of industries, as well as the quality improvement and expansion of consumption, have driven demand increases and price rises in certain sectors. New growth drivers are emerging, with robust development in fields such as artificial intelligence, high-end equipment, and new materials. Prices in the smart unmanned aircraft manufacturing, carbon new materials, and shipbuilding and related equipment manufacturing sectors increased by 2.5%, 0.4%, and 0.3%, respectively. Consumption of high-quality goods is growing rapidly, with prices in the smart home consumer equipment and skincare cosmetics manufacturing sectors rising by 3.4% and 0.7%, respectively. From a year-on-year perspective, the national PPI rose by 3.5%, with the increase down by 0.6 percentage points compared to the previous month. By industry, among the major sectors with price increases, the prices in the petroleum and natural gas extraction industry, petroleum, coal, and other fuel processing industries, as well as the chemical raw materials and chemical products manufacturing industry rose by 3.2%, 8.2%, and 9.1%, respectively; the prices in the non-ferrous metal mining and selection industry and the non-ferrous metal smelting and rolling processing industry increased by 22.6% and 20.2%, respectively, while the black metal smelting and rolling processing industry saw a price rise of 2.7%. The increases in all these sectors decreased compared to the previous month, with these six industries collectively contributing approximately 2.55 percentage points to the year-on-year PPI increase; the coal mining and washing industry rose by 27.1%, the electrical machinery and equipment manufacturing industry increased by 5.7%, and the computer, communication, and other electronic equipment manufacturing industry grew by 4.4%, with the increases in all three sectors expanding compared to the previous month, collectively influencing the year-on-year PPI increase by approximately 1.53 percentage points. The upward pull on the PPI from these nine industries decreased by 0.56 percentage points compared to the previous month. The five industries with the largest downward impact were: the power and heat production and supply industry, the automobile manufacturing industry, the non-metallic mineral product industry, the pharmaceutical manufacturing industry, and the beverage and refined tea manufacturing industry, with declines ranging from 2.3% to 5.7%, collectively contributing to a year-on-year PPI decrease of approximately 0.76 percentage points, which is a reduction of 0.05 percentage points compared to the previous month.