China's Producer Price Index (PPI) rose +0.5% MoM and +3.9% YoY in May, while producer purchase prices climbed +1.3% MoM and +5.8% YoY, pointing to continued cost pressures across the industrial sector.

• The increase was driven overwhelmingly by production materials, which rose +5.2% YoY. Mining prices jumped +15.8% YoY, raw materials increased +9.2% YoY, and processing industries rose +2.3% YoY.
• Commodity-related sectors remained especially strong: oil & gas extraction (+35.7% YoY), non-ferrous metal mining (+36.5% YoY), non-ferrous metal processing (+24.0% YoY), petroleum, coal & fuel processing (+18.4% YoY), and chemical manufacturing (+12.7% YoY).
• Input cost pressures also accelerated. Producer purchase prices rose +5.8% YoY, led by non-ferrous metals and wire materials (+22.0% YoY), chemical raw materials (+11.8% YoY), and fuel & power (+10.0% YoY).
• In contrast, consumer-oriented industries remained soft. Consumer goods prices fell -0.8% YoY, including food (-1.8% YoY), clothing (-1.0% YoY), and general daily necessities (-1.0% YoY).
• The report suggests China's inflation pressures remain concentrated in upstream commodity, metals, and energy sectors, while downstream consumer pricing power remains relatively subdued.