Inflation data from China showed a stable trend in May, as softer energy costs helped balance broader price movements, even while factory-level inflation continued to climb.

Official figures from the National Bureau of Statistics indicated that consumer prices increased by 1.2 percent year-on-year, unchanged from April. The reading suggests that inflationary pressure in the consumer market remains contained and still below the country’s 2 percent target.

On a monthly basis, consumer prices recorded a slight decline. The drop was largely driven by falling energy and service costs, with fuel prices reversing earlier gains and easing overall spending pressures.

While consumer inflation remained steady, producer prices moved in the opposite direction. The producer price index rose to 3.9 percent in May from 2.8 percent in April, marking the strongest increase in more than two years. The rise points to growing cost pressures at the factory gate level.

Analysts link the increase in wholesale inflation to stronger demand across domestic industries and shifts in global commodity pricing. They also point to rising activity in technology-related sectors, where demand for computing power and artificial intelligence infrastructure continues to grow.

Trade data for the period also showed stronger import and export activity, supported by increased demand for machinery and electronic components. Economists say this trend could help sustain industrial momentum in the months ahead.

Despite these gains in production and trade, consumer demand remains relatively subdued, reflecting a still uneven economic recovery across sectors in Beijing and other major cities.