National Bureau of Statistics: in May, the increasing demand for computing power has driven up prices in the non-ferrous metals, electrical machinery, and computer-related industries.

Dong Lijuan, Chief Statistician of the Urban Department of the National Bureau of Statistics, interpreted the May 2026 PPI data. From a month-on-month perspective, the national PPI rose by 0.5%, a decrease of 1.2 percentage points from the previous month. The main characteristics of this month's PPI from a month-on-month perspective are as follows: First, the optimization and upgrading of industrial structure have driven price increases in certain industries. The continuous updating of manufacturing equipment has led to a 1.2% increase in prices in the black metal smelting and rolling processing industry. The acceleration of electrification and the deep integration of artificial intelligence with various fields, as well as the increase in computing power demand, have driven price increases in industries such as non-ferrous metals, electrical machinery, and computer-related industries. Prices in the non-ferrous metal smelting and rolling processing industry rose by 1.1%, with prices for tin smelting and copper smelting rising by 4.8% and 3.1% respectively; prices in the computer communication and other electronic equipment manufacturing industry rose by 0.6%, with prices for integrated circuit packaging and testing series and external storage devices and components rising by 2.9% and 1.9% respectively; prices in the electrical machinery and equipment manufacturing industry rose by 0.5%, with prices for fiber optic manufacturing and wire and cable manufacturing rising by 8.0% and 1.2% respectively. Second, seasonal demand increases have driven price increases in certain industries. The increase in demand for coal and non-electrical coal for "peak summer cooling" has led to a 3.2% increase in prices in the coal mining and washing industry. As temperatures gradually rise in May, prices for household air conditioner manufacturing and household refrigeration appliance manufacturing increased by 0.9% and 0.3% respectively, while electricity supply prices rose by 0.4%. Third, the impact of international crude oil price fluctuations has resulted in domestic prices in related industries either decreasing or the rate of increase slowing down. The price of petroleum extraction, which rose by 24.1% last month, decreased by 1.8%, while the price of refined petroleum products manufacturing, which rose by 19.0%, decreased by 0.3%. Prices in the chemical raw materials and chemical products manufacturing industry, chemical fiber manufacturing industry, and rubber and plastic products industry rose by 2.0%, 1.5%, and 1.5% respectively, with the rate of increase decreasing by 6.3, 4.1, and 0.2 percentage points from the previous month.