China factory-gate inflation heats up as commodity costs rise, CPI lags forecasts
FXI•China’s producer price index rose 5.0% year on year in September, its fastest increase since June 2022 and above forecasts. Consumer inflation edged up to 0.9%, below expectations, as higher fuel costs were tempered by weak domestic demand.
1. Producer prices accelerate
China’s producer price index rose 5.0% from a year earlier in September, up from 3.8% in August and above the 4.5% increase economists had forecast. It was the fastest pace of factory-gate inflation since June 2022. Higher fuel and commodity prices lifted costs in fuel processing, chemicals and non-ferrous metals.
2. Consumer inflation remains muted
The consumer price index increased 0.9% year on year, compared with 0.8% in August and below the 1% forecast. Gasoline prices rose 16.6% and contributed about 0.47 percentage points to headline inflation, while core inflation held at 1%. The article said subdued household spending and fragile private-sector confidence continued to restrain broader price pressures.
