Producer inflation in China is at the highest level since 2022
While producer prices recorded the fastest increase since June 2022, as rising energy costs in China increased the expenses of factories, the slowdown in consumer prices could not be prevented.
While producer prices recorded the fastest increase since June 2022, as rising energy costs in China increased the expenses of factories, the slowdown in consumer prices could not be prevented.
In China, which is the epicenter of the global supply chain, ex-factory prices recorded the fastest climb in recent years, increasing the pressure on industrial costs again. The latest indicators shared by China's National Bureau of Statistics (NBS) revealed that the producer price index increased by 5.7 percent on an annual basis in the October period and reached the highest level since 2022.
Industrial Inputs and Price Increases Exceeding Expectations
This acceleration, which followed the 5 percent increase trend in September, surpassed market projections. While the median expectation in the economist survey organized by Bloomberg was 5.3 percent, the actual data exceeded almost all forecast limits. Dong Lijuan, a senior official of the statistical agency, drew attention to the dynamics behind the cost jump. Lijuan; He stated that nine industrial sectors, led by basic input branches such as oil and natural gas extraction, fuel processing facilities and coal mining, contributed more than 6 percentage points to the general increase in producer prices.
Separation on the Consumer Side and Market Repercussions
Despite the steep cost increase on the manufacturing side, the opposite trend is observed on the retail side. The consumer price index (CPI) in the country decreased from 0.9 percent recorded in the previous month to 0.7 percent in October, falling beyond market forecasts. Core CPI, which excludes energy and food items that are susceptible to price fluctuations, fell to 0.8 percent, reaching its lowest point of the year. This apparent gap between the escalation at the factory gate and the final consumer shows that industrialists are having difficulty reflecting rising raw material bills on labels and that the purchasing appetite in the domestic market remains weak.
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