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...