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China posts drop in producer prices
(Xinhua)
Updated: 2004-06-14 17:02

China's producer prices dropped by 0.3 percent in May, the first dip since last July, China's central bank said Monday in its monthly report.

According to the report issued by the People's Bank of China, prices of investment products were down by 0.5 percent over the previous month, but still up 9.4 percent year-on-year.

The prices of products for fixed-asset investment in May went down by 0.8 percent over April, or up 5 percent over the same period of 2003, while the prices of products for non-fixed-asset investment dipped 0.4 percent, or 10.6 percent year-on-year.

The prices of consumer goods were up by 0.1 percent in May, up 9.5 percent over the same period of last year. Food prices went up 0.3 percent last month, or 16.1 percent more than the same period last year, while prices of other consumer goods grew by 0.1 percent, up 3.6 percent year-on-year.

The prices of coal, oil products and electricity increased by 1.4 percent in May, up 10.2 percent than the same period last year. Coal prices went up by 3.5 percent, up 37.9 percent during the past year.

Prices of building materials and non-mental ores in May were down by 0.7 percent over April, up 5.1 percent over the same period of last year.

The prices of automotive vehicle in May dropped 0.3 percent over April, or down by 5 percent over the same period last year. The prices of sedan was down by 0.5 percent over April, or 8.6 percent year-on-year.

China's economy grew 9.8 percent in the first quarter this year, prompting the central government to tighten credit and rein in such overheated sectors as steel, property and cement, which analysts say help reduce market demands for products for those sectors, thus lowering prices of those products.

China has also raised the deposit-reserve ratio for financial institutions, checking on illegal land acquisition and use.

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