In terms of inflation pressure; In an environment where supply and demand stability in the market is followed as the main component, some pressure policies are applied in China, especially in the context of providing supply for the commodity market and establishing price stability. From a monthly perspective; There was a 0.3% increase in CPI in July and a slight decrease from last month’s increase rate. From an annual perspective, CPI increased by 1%, down 0.1% month-on-month. On the PPI side; The price increase in industrial products increased slightly in July due to the sharp increase in the prices of crude oil, coal and related products. On a monthly basis, PPI increased by 0.5%; On an annual basis, PPI increased by 9%, increasing by 0.2 points compared to the previous month.
If we look at the sub-items; while food prices fell by 0.4%; Non-food prices increased by 0.5%. Among non-food products, the price of industrial consumer goods increased mainly due to gasoline and diesel prices. With the effect of summer travel, there is an increase in air ticket, tourism and hotel accommodation prices. In producer costs; Steel, non-ferrous metals and other industrial prices slowed somewhat. The rise in international crude oil prices caused producer prices to rise in domestic oil-related sectors. The price of agricultural materials also rose rapidly.
There is a loss of momentum in CPI, but upward pressure in PPI continues. We will see some increase with the core CPI repercussions of cost pass-through. Policies to control supply and prices seem to have had a somewhat suppressive effect, however, problems still continue in transportation and logistics. So price pressures are still on the upside and this needs to come under control organically. The open margin between the producer and consumer price also shows that the reflection coefficient of cost increases to the market is low.
Kaynak Tera Yatırım
Hibya Haber Ajansı
Kaynak: Hibya Haber Ajansı
