June 16 — National Bureau of Statistics spokesperson Wang Guanhua told a State
Council Information Office briefing that although the producer price index (PPI)
increase has widened, it is running relatively stable and prices for everyday
consumer goods remain steady. He said the divergence reflects different
coverage: PPI captures industrial-output prices and shows clear structural
gains, while the consumer price index (CPI) covers all consumption categories,
with larger weights on food and services that are less sensitive to industrial
price swings. He added upstream industrial prices are more directly affected by
international commodity moves, but pass-through to mid- and downstream sectors
usually weakens due to market competition and technological progress, so
transmission along the chain tends to attenuate.
