China’s factory gate prices reach historic highs in three years
Factory gate prices in China advanced at their fastest pace in three and a half years in April, official data showed on Tuesday. The acceleration could be attributed to the country’s sustained economic momentum after its economy saw an expansion in the first quarter.
The producer price index (PPI) recorded an annualized 18.3% increase from a year ago, the National Bureau of Statistics said in a statement. The reading came larger than the 6.5% jump expected by analysts in a Reuters survey. This also surpassed a 4.4% hike seen in March.
As for the consumer price index (CPI), it recorded a 0.9% year-on-year jump in April. The figure placed a shade lower than the 1.0% rise expected by analysts. After an 18.3% reading recorded by the country’s gross domestic product in the first quarter, the economy was expected to grow another 8% in 2021.