China’s producer prices rose 5% in September, the fastest pace since June 2022, driven by higher fuel and coal costs. Consumer inflation also picked up, though it remained slightly below forecasts.
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01Summary
- 01China’s producer price index rose 5% in September, above the 4.5% forecast by Reuters-polled economists.
- 02The September reading was up from 3.8% in the previous month and the fastest increase in more than four years.
- 03China’s National Bureau of Statistics said coal prices rose on winter heating demand, tight supply in major producing areas and expectations of higher international coal prices.
- 04Consumer prices increased 0.9% year on year, just below the 1% forecast, while core CPI climbed 1%.
- 05Gasoline prices rose 16.6% and food prices fell 1.7%, partly offsetting each other in the consumer inflation figure.
02Why it matters
The data show inflation pressures are building in China’s factories and, to a lesser extent, at the consumer level. That matters because it may influence how much further policymakers support the economy as growth slows.
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