China's industrial deflation intensified in May

China's industrial deflation intensified in May, and the ex-factory price of industrial products fell the most in more than four years, because the new crown epidemic has suppressed global demand for commodities.

The National Bureau of Statistics of China announced on Wednesday that the May producer price index (PPI) fell 3.7% year-on-year . The PPI decline in May was greater than the 3.1% decline in April, and also slightly exceeded the decline expected by economists.

Yang Wei, an economist at Kaiyuan Securities, said that weak demand in the US and Europe has dragged down commodity prices, which has lowered product offers from Chinese industrial wholesalers.

He said that external pressure is the main factor affecting the May data.