China’s factory gate prices see fastest growth since 2008, adding to global inflation pressures – Reuters

SourceReuters
SectorIndustrial
CountryMiddle east

A worker wearing a face mask works on a production line manufacturing bicycle steel rim at a factory, as the country is hit by the novel coronavirus outbreak, in Hangzhou, Zhejiang province, China March 2, 2020. China Daily via REUTERS/File Photo

China’s factory gate prices rose at their fastest annual pace in over 12 years in May, driven by surging commodity prices, adding to global price pressures at a time when policymakers are trying to revitalise growth following the COVID-19-induced slump.

Investors are increasingly worried that pandemic-driven stimulus measures could supercharge global inflation and force central banks to tighten policy, potentially curbing the recovery.

China’s producer price index (PPI) increased 9.0% from a low base a year earlier, the National Bureau of Statistics (NBS) said in a statement, driven by significant price increases in crude oil, iron ore and non-ferrous metals.

Analysts in a Reuters poll had expected the PPI to rise 8.5% after a 6.8% increase in April.

Consumer prices saw their biggest...read more...