• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

China’s factory inflation hits 13-year high as materials costs soar

September 10, 2021 by David Barret Leave a Comment

September 10, 2021

(Corrects currency conversion in paragraph 14)

BEIJING (Reuters) – China’s factory gate inflation hit a 13-year high in August driven by roaring raw materials prices despite Beijing’s attempts to cool them, putting more pressure on manufacturers in the world’s second-largest economy.

The producer price index (PPI) rose 9.5% from a year earlier in August, the National Bureau of Statistics (NBS) said on Thursday, faster than the 9.0% increase tipped in a Reuters poll and the 9.0% reported in July. That was the fastest pace since August 2008.

China’s economy has recovered strongly from last year’s coronavirus slump but has been losing steam recently due to domestic COVID-19 outbreaks, high raw material prices, tighter property curbs and a campaign to reduce carbon emissions.

Commodity prices have been on a tear in recent months, hurting the bottom lines of many mid- and downstream factories. China’s coal prices soared to a record high on Tuesday over supply concerns as major coal regions started fresh rounds of safety checks.

Earnings at China’s industrial firms have slowed for five straight months.

But coal and metals prices will likely drop back as construction activity falls amid restrictions on the property sector and slowing credit growth, Julian Evans-Pritchard, senior China economist at Capital Economics, wrote in a note.

And the higher comparison base towards the end of last year will also pull down overall inflation. “We doubt producer price inflation will rise much further,” he said.

The coal, chemicals and metals industries drove much of the price increases in August, according to a statement released alongside the data by Dong Lijuan, an NBS official.

Prices in the coal mining and washing sector grew 57.1% in August from a year earlier.

A separate NBS statement showed that the consumer price index (CPI) in August rose 0.8% from a year earlier, compared with a 1.0% gain in a Reuters poll and below the government target of around 3% this year.

China tightened social restrictions to curb the COVID-19 Delta variant including travel limits, which have hampered service-sector demand, although Beijing has largely contained the latest coronavirus outbreaks.

Declines in airfares, travel and hotel room prices due to the pandemic slowed consumer inflation on a monthly basis, according to NBS’s Dong.

Service-sector activity plunged in August to the lowest level since the pandemic’s first wave in April 2020, a recent survey showed, as COVID-19 restrictions threatened to derail the recovery.

Many analysts expect the People’s Bank of China to deliver a further cut to the amount of cash banks must hold as reserves later this year to lift growth, on top of July’s cut, which released around 1 trillion yuan ($155.32 billion) in long-term liquidity into the economy.

“We expect monetary policy to remain prudent with a slightly loosening bias for the rest of the year,” said Jing Liu, senior economist for Greater China at HSBC, in a note.

China’s consumer price inflation, which is likely to stay muted, will not constrain a slight loosening stance, she added.

The core consumer price index, which strips out volatile food and energy prices, stood at 1.2% on year, versus a 1.3% rise in July.

($1 = 6.4385 Chinese yuan renminbi)

()

(Reporting by Gabriel Crossley and Liangping Gao; Editing by Sam Holmes)

Source Link China’s factory inflation hits 13-year high as materials costs soar

David Barret
David Barret

Related posts:

  1. Beijing city looks to take Didi under state control, Bloomberg News reports
  2. Instagram may not be a photo-sharing app anymore, but Glass is
  3. Amazon fires surge anew in Brazil as cleared forest burns
  4. As U.S. unemployment benefits end, firms hope for a wave of applicants

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Wearing A Tie Might Have A Concerning Consequence
  • How Many Babies Did Dinosaurs Have? And Other Questionable Prehistoric Parenting Practices
  • Cookiecutter Sharks Are Adorable Little Freaks – And Eat Their Prey In A Bizarre Way
  • 6,000 Years Ago, A Mysterious Human Population Entered South America – Then Vanished Without A Trace
  • “Interstellar Concert”: ESA Beams “True Unofficial Space Anthem” To NASA’s Voyager 1
  • Over 700 Manatees Gather In Florida Park, The Largest Group Ever Seen There
  • Good News, The Milky Way May Not Collide With Andromeda In 5 Billion Years After All
  • What Is This Giant Line That Slices Through Scotland?
  • “Unlike Anything We Have Seen Before”: Repeating Signal From Deep In Galactic Plane Puzzles Astronomers
  • How You Can Navigate Your Way North Or South Using A Crescent Moon
  • Help, My Nails Have Turned Green! What Is Chloronychia, AKA “Green Nail Syndrome”?
  • Is 1 Billion The Same Number Around The World? The Short Answer Is: No
  • The World’s Oceans Are Getting Darker, Raising “A Genuine Cause For Concern”
  • Seals Playing Video Games For Science? We’ve Got The Footage To Prove It
  • Are There Colors That Only Exist In Our Brains? Find Out More In Issue 35 Of CURIOUS – Out Now
  • If They Take Fluoride Out Of The Water, What Could Happen To Americans’ Teeth?
  • Paraglider Accidentally Flies Into The “Death Zone” 8,500 Meters Up – And Survives
  • World’s Oldest Fingerprint, Bioacoustics Could Give Us “A Peek Into The Language Of Wolves”, And Much More This Week
  • Please Stop Jamming Coins Into The Rocky Cracks Of Legendary Giant’s Causeway
  • We’re A Step Closer To Knowing Who Made The Earliest Known Stone Tools
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version