Factory prices in China expands at the fastest rate in 13 years
China’s factory gate inflation soared to a 13-year high in August despite Beijing’s efforts to lower commodity prices.
The National Bureau of Statistics (NBS) reported a 9.5% increase in the producer price index (PPI) from a year earlier. The latest figure exceeded analysts’ forecast and July’s reading of both 9.0%. It was also the fastest rate since August 2008.
China’s pandemic-hit economy rebounded strongly from previous contractions. However, new COVID-19 outbreaks, high raw material costs, stricter property curbs, and the country’s bid to reduce carbon emissions disrupted its momentum.
The coal, chemicals, and metal industries fuelled majority of the price increases last month, with coal mining and washing sector prices recording a 57.1% growth in August from a year earlier.
Meanwhile, the consumer price index (CPI) in August climbed 0.8% from a year earlier. It missed analyst prediction and the government’s goal of 1.0% and 3% gain, respectively.
NBS official Dong Lijuan said a drop in airfares, travel, and hotel room prices weakened consumer inflation on a monthly basis.