The price of XXX will rise by 5% from next month..."
Since the beginning of this year, we believed you have received the notice from Chinese supplier that the price must be adjusted as the cost of the raw material is increasing crazily. Now let's check some data and share with you as below.
In March 2021, Producer Price Index (PPI) for manufactured goods rose by 4.4 percent year-on-year and 1.6 percent month-on-month. The purchasing price index for manufactured goods increased by 5.2 percent year-on-year and 1.8 percent month-on-month. From January to March, on average, the producer price of industrial products increased by 2.1 percent over the same period last year, and the purchasing price of industrial products increased by 2.8 percent.
Year-on-Year Changes of Prices of Different Categories
Among the PPI for manufactured goods, the year-on-year producer prices for means of production increased by 5.8 percent, and the pace of growth enlarged 3.5 percentage points than that of last month, affecting 4.32 percentage points increase in the overall level of producer price. Of which, producer prices for mining and quarrying industry, raw materials industry, manufacturing and processing industry increased by 12.3, 10.1 and 3.4 percent. Producer prices for consumer goods changed from 0.2 percent of decreased in last month to 0.1 percent, meaning 0.04 percentage point increase in the overall price level. Of which, producer prices for foodstuff increased by 2.0 percent, while that of clothing fell by 0.8 percent, that of commodities was flat, and that of durable consumer goods decreased by 1.4 percent.
Among the purchaser price index, the year-on-year purchaser price indices for non-ferrous metal materials and wires, ferrous metal materials, chemical raw materials and fuel and power jumped by 17.3, 15.6, 7.1 and 2.7 percent.
Month-on-Month Changes of Prices of Different Categories
Among the PPI for manufactured goods, the prices for means of production went up by 2.0 percent month-on-month, enlarged 0.9 percentage point over last month, affecting 1.52 percentage points increase in the overall level of producer price. Of the total, producer prices for mining and quarrying industry increased by 1.0 percent, that of raw materials industry increased by 3.9 percent and that of manufacturing and processing industry rose by 1.3 percent. The prices of consumer goods increased by 0.2 percent, affecting 0.05 percentage point increase in the overall level of producer price. Of which, the producer prices for foodstuff increased by 0.2 percent, that of clothing and durable consumer goods both rose by 0.3 percent, while that of commodities was flat.
The month-on-month purchaser price indices for chemical raw materials, non-ferrous metal materials and wire, ferrous metals materials and fuel and power, respectively increased by 4.8, 3.8, 3.0 and 1.4 percent.