Retail, wholesale prices may show dip in May

Retail, as well as wholesale, prices are likely to remain in negative territory in May, analysts and financial institutions surveyed recently have said.

The dip is however being seen as a temporary phenomenon, with prices expected to inch higher in the coming months as economic activity starts to pick up.

The Economic Observer Online, a Chinese-language website, recently surveyed nine financial institutions, and the results showed that consumer prices in May were likely to plunge by 1.4 percent year-on-year due to seasonal declines in food prices. Producer prices were shown to drop by 6.4 percent on the back of higher commodity prices.