China producer inflation hits four-year high as energy costs surge

(Sharecast News) - China's factory-gate inflation accelerated to its strongest level in more than four years in October, driven by higher global energy prices, while consumer inflation remained relatively subdued. Data from the National Bureau of Statistics showed producer price inflation rose to 5.7% year-on-year in October from 5% in September, marking its highest level since June 2022. On a monthly basis, producer prices increased 0.7%, easing from September's 1.2% gain.

The statistics bureau said energy-related sectors, including oil and gas extraction and petroleum refining, accounted for more than 80% of the increase, reflecting higher fuel demand ahead of winter and rising global energy prices. Improvements in industrial capacity management and investment linked to artificial intelligence also contributed to price gains in parts of the manufacturing sector.

Consumer price inflation eased to 0.7% from 0.9% a month earlier, however, as falling food prices offset a sharp increase in petrol costs. Vegetable prices dropped 16.9% year-on-year, while pork and fruit prices fell 8.6% and 3.8%, respectively.

Meanwhile, core inflation, which strips out volatile food and energy prices, slowed to 0.8% from 1.0%, indicating that underlying domestic price pressures remained contained despite rising costs further up the supply chain.









Reporting by Iain Gilbert at Sharecast.com