China's Producer Price Gains Moderate

The video discusses the Producer Price Index (PPI) for May, which is at 5.5%, slightly below the consensus estimate of 5.6%. This marks the slowest pace of factory gate inflation this year and the third consecutive month of disinflation. Despite a history of deflation, recent months have seen inflation due to changes in commodity prices. However, this has not significantly impacted Consumer Price Index (CPI) inflation, which remains at 1.5%, aligning with expectations. The video highlights the disconnect between PPI and CPI due to industrial overcapacity in China.

What was the CPI inflation rate in May and how does it compare to the previous month?

What trend is observed in factory gate inflation over the past few months?