China's producer price index (PPI), a pre-indicator of consumer prices, is estimated to have fallen 5.8 percent year on year in November, predicted Mysteel.com, a commodity services provider.
Mysteel.com made the prediction pursuant to its commodity price index - MyBCIC, which, sampling data from nine selected industries, plunged 16.46 percent from a year ago and 1.52 percent from October to 815.50 points in November.
Sub-indices of MyBCIC all dropped last month, with iron and steel price index diving 31.98 percent, followed by indices for non-ferrous metal, rubber and plastics, basic chemicals, energy, building materials, textile and farm produce prices.
Besides, Mysteel tested the correlation between PPI and MyBCIC, finding that MyBCIC has the closest relation with PPI when it was one month ahead of the PPI. In October, MyBCIC dropped 16.27 percent year on year to 828.07 points.
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