China's consumer price index (CPI) experienced a marginal decline of 0.1 percent year-on-year in May, a trend that mirrors a similar decline recorded in April, as reported by the National Bureau of Statistics (NBS).

This decrease has been predominantly attributed to a substantial 6.1 percent reduction in energy prices, as clarified by NBS chief statistician Dong Lijuan.

Conversely, core inflation has shown an encouraging upward trend, with the core CPI rising by 0.6 percent year-on-year in May. This figure represents an increase of 0.1 percentage points compared to the previous month, suggesting effective implementation of government policies aimed at enhancing consumer spending.

Notably, the prices of durable goods in the recreation sector increased by 1.8 percent year-on-year, while the broader service sector saw a price rise of 0.5 percent, both reflecting stronger price momentum than that observed in April.

On a monthly basis, the CPI registered a slight decrease of 0.2 percent in May. Dong indicated that this shift from growth to decline was primarily influenced by falling energy prices.

However, in contrast to the overall CPI trend, hotel accommodation prices surged by 4.6 percent in May, marking the highest increase for that month in nearly a decade.

Additionally, travel-related expenses rose by 0.8 percent, surpassing typical seasonal expectations.

The NBS highlighted that the spike in prices can be attributed to the effects of holiday travels and cultural activities, coupled with a broader recovery in consumer expenditure, which has aided in maintaining price stability across major segments.

Further insights from the NBS revealed that the producer price index (PPI), which gauges costs at the factory level, declined by 3.3 percent year-on-year in May. This decline reflects a widening of 0.6 percentage points compared to April, attributed significantly to a higher base of comparison from the previous year.

On a month-on-month basis, the PPI experienced a 0.4 percent drop, consistent with the pace observed in April.

Dong pointed out emerging positive trends, including price recoveries in various consumer goods spurred by new consumption drivers.

For instance, clothing prices rose by 0.2 percent, while prices for arts and crafts, as well as ceremonial products, surged by 12.8 percent during the same period.

Additionally, emerging manufacturing sectors are contributing to price increases; for example, prices in semiconductor packaging and testing, along with aircraft manufacturing, rose by 3.6 percent.

The declines in new energy sectors, such as photovoltaics and lithium batteries, have also shown signs of narrowing, indicating improved supply-demand dynamics.