In December 2016, the national ex-factory price index for industrial producers rose by 1.6% month-on-month and by 5.5% year-on-year. The purchase price index for industrial producers increased by 1.9% month-on-month and by 6.3% year-on-year. In 2016, the ex-factory price index for industrial producers fell by 1.4% year-on-year, while the purchase price index for industrial producers declined by 2.0% year-on-year.

I. Year-on-Year Changes in Producer Prices for Industrial Products

Among the ex-factory prices of industrial producers, prices of means of production rose 7.2% year-on-year, contributing approximately 5.3 percentage points to the overall increase in the nation's ex-factory prices of industrial producers. Specifically, prices in the mining industry rose by 21.1%, prices in the raw materials industry rose by 9.8%, and prices in the processing industry rose by 5.1%. Prices of consumer goods rose 0.8% year-on-year, adding about 0.2 percentage points to the overall increase in the nation's ex-factory prices of industrial producers. Among these, prices of food, clothing, and general daily necessities all rose by 1.3%, while prices of durable consumer goods fell by 0.8%.

Among the purchase prices of industrial producers, prices for ferrous metal materials rose by 15.1% year-on-year, prices for non-ferrous metal materials and wires rose by 14.9%, and prices for fuels and power rose by 10.1%.

II. Monthly Changes in Producer Prices for Industrial Products

Among the ex-factory prices of industrial producers, the prices of means of production rose by 2.0% month-on-month, contributing approximately 1.5 percentage points to the overall increase in the nation’s ex-factory prices of industrial producers. Specifically, prices in the mining and raw materials industries both rose by 2.7%, while prices in the processing industry increased by 1.6%. The prices of consumer goods rose by 0.3% month-on-month, adding about 0.1 percentage point to the overall increase in the nation’s ex-factory prices of industrial producers. Among these, prices of food and general daily necessities both rose by 0.4%, clothing prices rose by 0.3%, and durable consumer goods prices rose by 0.1%.

Among the purchase prices of industrial producers, prices for ferrous metal materials rose by 4.1% month-on-month, prices for non-ferrous metal materials and wires increased by 3.3%, and prices for fuels and power rose by 2.3%.

Note

1. Indicator Explanation

The Industrial Producer Price Index includes the Producer Price Index for Industrial Products (PPI) and the Industrial Producer Purchase Price Index.

The Industrial Producer Price Index reflects the trend and magnitude of changes in ex-factory prices when industrial enterprises sell their products for the first time.

The Producer Purchase Price Index reflects the trend and magnitude of changes in purchase prices of intermediate input products by industrial enterprises.

2. Statistical Scope

The statistical survey on ex-factory prices of industrial producers covers the prices of more than 20,000 industrial products across 1,638 basic categories; the statistical survey on purchase prices of industrial producers covers the prices of more than 10,000 industrial products across over 900 basic categories.

3. Research Methodology

The survey of industrial producer prices employs a combined approach that integrates key surveys with typical surveys. Enterprises with annual main business revenues exceeding 20 million yuan are surveyed using the key survey method, while enterprises with annual main business revenues below 20 million yuan are surveyed using the typical survey method. The survey of industrial producer prices covers more than 50,000 industrial enterprises in over 400 cities nationwide.

4. The basis for the classification standards of industrial sectors is the “Classification of National Economic Industries” (GB/T 4754-2011).