China’s producer prices rise at fastest pace in 13 years

Prices of goods leaving Chinese factories have risen at the fastest pace since the global financial crisis, adding to pressure on the country’s leaders as they struggle with soaring commodity prices.

Data from the National Bureau of Statistics showed on Wednesday that China’s producer price index rose 9 percent in May, its biggest year-on-year rise since September 2008 and above economists’ expectations.

The index has risen sharply in recent months – Gain 6.8 percent In April – helped by lower base effect after being in negative territory for most of the past year.

The cost of raw materials, which is a key part of China’s producer price index, rose sharply last month. NBS data showed that prices in the ferrous metal smelting industry rose 38 percent year on year, while coal mining prices added 30 percent.

strong for china industrial recovery It has driven up prices in goods, but as costs rise, profits are in danger of deflation.

The Chinese government’s economic planning agency warned last month of ‘Excessive speculation’ In the commodity markets, he will suppress monopolies and false information. Iron ore, struck in May The highest level Ever since, I slipped into the news.

The government also stressed the need to prevent spillovers to consumer prices, which are still low and which have been driven by the volatility of pork prices over the past year. Economists said higher costs would do instead Job margins pressureEspecially for those who sell directly to consumers.

The National Bureau of Statistics said consumer prices rose 1.3 percent in May, the biggest rise since September last year, but fell 0.2 percent month-on-month.

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