Business

China’s factory inflation hits 25-year high in September


An employee works on the production line of a tyre factory under Tianjin Wanda Tyre Group, which exports its products to countries such as US and Japan, in Xingtai, Hebei province, China May 21, 2019. — Reuters pic
An employee works on the production line of a tyre factory under Tianjin Wanda Tyre Group, which exports its products to countries such as US and Japan, in Xingtai, Hebei province, China May 21, 2019. — Reuters pic

BEIJING, Oct 14 — China’s factory-gate prices rose at the highest rate in at least 25 years in September, official data showed Thursday, hit by the rising cost of coal.

The producer price index (PPI), which measures the cost of goods at the factory gate, rose 10.7 per cent on-year, according to the National Bureau of Statistics.

It was the highest level on record in NBS data, which goes back to October 1996.

The figures come after factory-gate inflation jumped to a 13-year high in August, reflecting a surge in commodity prices — piling pressure on businesses already struggling with power rationing last month that affected output.

“In September, affected by factors such as rising prices of coal and some energy-intensive industry products, the price increase of industrial products continued to expand,” said NBS senior statistician Dong Lijuan in a statement.

Dong added that among 40 industrial sectors surveyed, 36 saw price hikes — including coal mining, which saw a bump of 74.9 per cent.

Meanwhile, the consumer price index (CPI), a key gauge of retail inflation, came in at 0.7 per cent on-year, slightly down from the 0.8 per cent reading for August.

The NBS said that pork prices — which fuelled a spike in CPI previously — fell by 46.9 per cent on an annual basis. — AFP



READ SOURCE

See also  KS Energy wins fresh contract extension for rig in Vietnam

Leave a Reply