Jinan Zhuocheng Bio-Tech Co., Ltd.

Data released by China's National Bureau of Statistics on June 10 showed that in May 2026, the national Producer Price Index (PPI) increased by 3.9% year-on-year and 0.5% month-on-month. The Producer Purchasing Price Index rose 5.8% year-on-year and 1.3% month-on-month.

From a month-on-month perspective, fluctuations in international crude oil prices were transmitted to domestic industries, causing prices in some petroleum-related sectors to either decline or experience slower growth. Prices in the oil and gas extraction industry shifted from a 24.1% increase in April to a 1.8% decline in May. Prices in refined petroleum products manufacturing moved from a 19.0% increase to a 0.3% decrease.

Meanwhile, prices in several chemical-related industries continued to rise, although at a slower pace. Prices in the chemical raw materials and chemical products manufacturing industry, chemical fiber manufacturing industry, and rubber and plastic products industry increased by 2.0%, 1.5%, and 1.5% respectively, with growth rates slowing by 6.3, 4.1, and 0.2 percentage points compared with the previous month.

On a year-on-year basis, prices in the oil and natural gas extraction industry, petroleum, coal and other fuel processing industry, and chemical raw materials and chemical products manufacturing industry increased by 35.7%, 18.4%, and 12.7%, respectively.

Among industrial producer purchasing prices in May:

• Chemical raw materials increased 11.8% year-on-year and 4.2% month-on-month.
• Fuel and power materials increased 10.0% year-on-year and 2.7% month-on-month.
• Textile raw materials increased 2.5% year-on-year and 1.0% month-on-month.

For the January–May period, the average Producer Price Index increased 1.0% compared with the same period last year, while the average Producer Purchasing Price Index rose 1.6% year-on-year.

The continued increase in chemical raw material prices suggests ongoing cost pressure across downstream sectors, including pharmaceuticals, active pharmaceutical ingredients (APIs), fine chemicals, and specialty materials. However, the moderation in petroleum-related price growth indicates that upstream energy-driven inflation may be gradually easing.