China’s July factory price acceleration troubles businesses
China’s factory gate prices increased at a higher rate in July compared with the previous month, beating analyst predictions. The development added concerns on businesses already grappling with high raw material costs. Meanwhile, consumer inflation marginally slowed in the country.
The producer price index (PPI) hit the May peak with a 9.0% growth from a year earlier, the National Bureau of Statistics (NBS) said on Monday. This exceeded the Reuters poll expectation of an 8.8% increase.
The PPI climbed 0.5% on a monthly basis, faster than the 0.3% uptick in June.
China recorded a strong economic recovery from the COVID-19 pandemic. However, problems with higher commodity prices and global supply chain bottlenecks caused a disruption on its momentum.
Economic activity has also been affected by recent severe rains and floods in certain Chinese provinces.