Zhou Jianshe:

Due to time constraints, we will take one last question.

Jinan Times APP:

The CPI rose 1.2% year on year in May, but declined compared with the previous month. Could you elaborate on the changes in consumer prices in May and the outlook for future price trends? Thank you:

Fu Linghui:

I would like to invite Ms. Wang to answer your question.

Wang Guanhua:

Thank you for your question. The performance of consumer prices in May can be understood from the following four aspects.

First, consumer prices registered a moderate and stable increase. Since the fourth quarter of last year, consumer prices have maintained a trend of moderate recovery. In May, the CPI increased 1.2% year on year, which was the same as the previous month, registering growth of over 1% for the fourth consecutive month. The core CPI, which excludes food and energy prices, rose 1.1%, down slightly by 0.1 percentage point from the previous month. Overall, both the CPI and core CPI remained stable, with moderate price increases. On a month-on-month basis, the CPI fell 0.1 % in May after rising 0.3 % in April, mainly due to changes in energy and service prices. Affected by international oil price fluctuations, domestic gasoline prices shifted from a month-on-month increase of 12.6% in April to a decline of 0.3% in May. Following the May Day holiday, seasonal travel demand eased, and prices for transportation rentals and air tickets declined after previous increases, contributing to a shift in service prices from a 0.5% month-on-month increase in April to a 0.1% decline in May.

Second, expanding consumer demand continued to support price growth. With the launch of summer clothing collections in May, demand for replacements and new purchases of clothing increased, driving clothing prices up 0.6% month on month and 1.4% year on year. Strong demand related to artificial intelligence also boosted prices of consumer electronics. Prices of cellphones and tablet computers both increased on a month-on-month and year-on-year basis in May. Meanwhile, the continued release of demand for consumption upgrading pushed up prices in transportation and communications as well as education, culture and recreation by 5.4% and 1.3% year on year, respectively.

Third, prices of essential goods, especially food products, remained generally stable with a slight decline. China made continued efforts to ensure the supply of key daily necessities. Food prices maintained a pattern of minor fluctuations and were generally stable with a slight decline. In May, food prices fell 1.7% year on year. Among food items, prices of fresh fruits and edible oils decreased 2.2% and 1.2%, respectively, while prices of eggs, mutton, beef and fresh vegetables increased.

Fourth, the fundamentals supporting overall price stability remained unchanged. Looking ahead, the complex international environment remains, and trends in global commodity prices are subject to uncertainties. However, China has ample supplies of key daily necessities, smooth coordination across production, transportation and sales, a continuously improving policy framework for ensuring supply and stabilizing prices, and stronger capabilities in price monitoring, early warning and emergency regulation. These favorable conditions provide a solid support for maintaining stable prices, and consumer prices are expected to continue their moderate upward trend. Thank you.

Zhou Jianshe:

That concludes today's press conference. Thank you to our two speakers and friends from the media for joining us. Goodbye.

Translated and edited by Mi Xingang, Yang Chuanli, Yan Bin, You Jiaxin, Xu Kailin, Yan Xiaoqing, Liu Jianing, Liu Caiyi, Wang Wei, Li Xiao, Gong Yingchun, Liu Sitong, Zhou Jing, Zhang Rui, Wang Yanfang, Li Huiru, Liu Sitong, Jay Birbeck, and David Ball. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.