Data released on September 10th by the Sichuan Survey Team of the National Bureau of Statistics shows that in August, the province's Consumer Price Index (CPI) rose 0.4% month-on-month, reversing the previous month's decline. On an annual basis, the CPI climbed 0.9%, with the pace of increase accelerating by 0.6 percentage points from July, maintaining an overall trend of moderate growth.

The core CPI, which strips out volatile food and energy prices, rose 1.0% year-on-year, continuing its upward trajectory for an 18th consecutive month.

Egg, pork and fresh vegetable prices climb month-on-month

“Egg prices have gone up again,” said Ms. Yang, a Chengdu resident, who purchased a 1.59-kilogram box of selected fresh eggs for 21.8 yuan at a major supermarket chain in late August, compared to 18.9 yuan for the same product at the end of July. A recent survey of several Chengdu wet markets and supermarkets found retail egg prices generally exceeding 6 yuan per 500 grams.

This aligns with the official data, which shows egg prices in Sichuan rose 1.4% month-on-month in August. Industry experts attribute the increase primarily to production adjustments and demand factors. Last year's deep losses across the layer farming industry led breeders to cull older hens early, resulting in lower flock numbers and a production gap. On the demand side, stockpiling for the Mid-Autumn Festival, combined with the back-to-school season, created a concentrated release of market demand that pushed prices higher. High summer temperatures also contributed by reducing egg-laying rates.

Beyond eggs, pork prices in Sichuan rose 5.1% month-on-month and fresh vegetable prices increased 3.7% in August. An official from the Consumer Price Survey Division of the Sichuan Survey Team explained that these monthly trends mirror the national pattern. Pork prices continued their upward momentum from July, driven by production capacity controls, while high temperatures and heavy rainfall raised production costs and spoilage rates for vegetables, leading to higher prices.

Influenced by international market fluctuations, gasoline prices in Sichuan rose 7.1% month-on-month in August, reversing the previous month's decline and providing the biggest boost to the monthly CPI increase. Gold jewelry and other ornaments saw monthly price gains of 5.5% and 3.8%, respectively.

Service prices remained flat month-on-month in August as the summer tourism boom began to taper off, with divergent trends across categories. Dining out, travel agency fees, and other tourism-related services continued to rise, while airfares, ride-hailing, movie and performance tickets, online video services, and hotel accommodation saw declines of 4.4%, 1.1%, 2.4%, 2.6%, 1.8%, and 2.7%, respectively, on a monthly basis.

Tight supply of chips and electronic components drives phone prices up 61.4% year-on-year

The Producer Price Index (PPI) in Sichuan rose 3.2% year-on-year in August, matching July's gain, while declining 0.1% month-on-month, a narrower drop of 1.1 percentage points compared with the prior month. An official from the Production Price Survey Division of the Sichuan Survey Team noted that the year-on-year PPI increase was mainly driven by sustained support from production material prices, a turnaround in living material prices from decline to growth, and continued cost pass-through effects.

Production material prices, which rose 3.9% year-on-year, remained the primary driver of the PPI increase in August. Imported cost factors also pushed up prices in related industries. With shipping risks in the Strait of Hormuz and production cuts by major oil-producing countries tightening crude supply, higher international oil prices lifted domestic refined product ex-factory prices. In August, refined petroleum product manufacturing prices rose 7.8% month-on-month and 9.0% year-on-year, with gasoline prices up 11.3% month-on-month and 9.5% year-on-year, and diesel prices up 4.8% month-on-month and 8.1% year-on-year.

Another notable feature of August PPI data was the significant boost from industrial transformation to electronics-related sectors such as communications equipment manufacturing. Persistently tight supply of high-end chips and precision electronic components kept raw material costs elevated, driving up finished product prices. Communications equipment manufacturing prices surged 20.8% month-on-month and 33.6% year-on-year in August. Within this category, mobile phone prices jumped 29.0% month-on-month and 61.4% year-on-year, while parts for mobile communication terminal equipment rose 17.8% month-on-month and 18.6% year-on-year.