Chinese producer prices hit a 26 -year high in October due to raw material costs, especially coal prices that continued to soar.
The producer price index (PPI) rose 13.5% from the previous year, beating forecasts for a 12.3% increase. The reading also rose higher than that recorded in September, 10.7%.
Meanwhile, the consumer price index (CPI) rose to 1.5% last month from 0.7% previously recorded and slightly exceeded expectations for a 1.4% increase. The figure recorded is the highest ever recorded since September 2020.
Producer prices in China have risen drastically over the past few months, due to rising global commodity prices and production restrictions caused by energy shortages across the country.
Consumer inflation, on the other hand, soared as supply problems pushed up food prices and producers placed higher costs on retailers.
Rising price pressures are complicating talks for the Central Bank of China (PBOC) which may now be wary of implementing monetary stimulus too quickly amid concerns over high inflation despite slowing growth in the world’s second-largest economy.
