China’s industrial component prices rise at highest rate since 2008


The rise in China’s producer price index, which measures factory-gate inflation, beat analysts’ expectations, growing by 9% in May on an annual basis, the highest rate since May 2008.

This comes despite attempts by the world’s second-largest economy to contain rising commodity prices, including considering controls on coal prices, expanding the supply of raw materials, and cracking down on speculation and hoarding.

The consumer price index, the broader, grew by 1.3% in May on an annual basis, below expectations.

This suggests that factories are so far absorbing costs rather than passing them on to consumers, with domestic demand recovering from the strict coronavirus-induced shutdowns imposed last year.


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