From Startup Fortune · · 1m 10s
China's factory prices jump 5.7% in October
China's factory prices rose 5.7% in October, the fastest since mid-2022, but shoppers feel little impact.
In brief
China's factory prices rose 5.7% in October, the fastest since mid-2022, but shoppers feel little impact. China's factory prices rose 5.7% in October, the fastest since mid-2022, while consumer prices stayed flat. Originally reported by Startup Fortune.
Factory prices surge
China's producer price index rose 5.7% from a year earlier in October, beating economists' 5.3% forecast.
Energy costs drive rise
Six energy-related industries, including oil and gas extraction, coal mining and refined petroleum, accounted for over 80% of the monthly increase.
Coal and oil prices jump
Coal mining prices rose 36.6% on the year, oil and gas extraction 35.0%, and petroleum processing 29.9%.
Consumer prices flat
Consumer prices rose 0.7% on the year, below forecasts and down from 0.9% a month earlier, with food prices falling.
Why shoppers feel little
Food prices fell 2.9% on the year, with fresh vegetables down 16.9% and pork down 8.6%, while gasoline prices rose 22.4%.
Central banks face challenge
The People's Bank of China has no urgent reason to tighten rates as consumer inflation remains low.
Next test for prices
Energy prices will determine whether the PPI keeps climbing or if October marks the peak.
In short
China's factory prices rose 5.7% in October, the fastest since mid-2022, while consumer prices stayed flat.
