China's PPI Accelerates to 2.8% MoM in April, CPI Rises 1.2% YoY

China's CPI in April increased by 1.2% year-on-year, with an expected growth of 0.9%; it rose by 0.3% month-on-month. Food prices fell by 1.6% year-on-year, while non-food prices rose by 1.8%.

China's PPI in April rose by 2.8% year-on-year, significantly exceeding expectations of 1.8%, with the previous figure at only 0.5%; it grew by 1.7% month-on-month.

After March's PPI just ended the decline of 41 consecutive months and turned positive for the first time, the April rise jumped to 2.8%, with a significant accelerating trend.

In April, the price of production materials rose by 3.8% year-on-year, driving the PPI by approximately 2.98 percentage points, with **extractive industry increasing by 10.6%, and raw material industry increasing by 7.1%.** Conversely, the price of means of subsistence fell by 1% year-on-year, with prices of food, clothing, and daily necessities all declining.

The key driver behind this is energy. Affected by conflicts in the Middle East, transportation in the Strait of Hormuz is severely obstructed, causing a substantial impact on global crude oil supply. According to the calculation of CICC, the average domestic refined oil price in April rose by 9.2% month-on-month, and the year