China’s factory gate prices reach historic highs in May
A gauge of China’s factory prices was seen at its highest level in over 12 years in May. The record was attributed mainly to an increase in global commodity prices and a low base of comparison. The country’s consumer prices also advanced, though they failed to breach expectations.
The producer price index (PPI) recorded a 9.0% increase from a year ago, the National Bureau of Statistics said in a statement. The figure stood above the 8.5% jump expected by analysts, placing larger than the 6.8% hike seen in April.
The expansion in May was owed mainly to surging prices of crude oil, iron ore, and non-ferrous metals. The jump seen in commodity prices might likely seep through consumption, an issue that pressured Chinese policymakers to take precautionary measures to avoid consumer inflation.