Earlier on Wednesday, China’s National Bureau of Statistics (NBS) data had revealed that the world’s second-largest country’s factory gate prices or factory inflation gobbled up by the steepest pace in more than 26 years last month, beating an analysts’ forecast while illustrating a further contraction in profit margins for Chinese producers, who had long been grappling with a sky-scrapping upsurge in coal alongside other commodity costs.
If truth is to be spoken, latest Government data from China came against a baleful backdrop for the Chinese manufacturers, as a series of floods had swept away a vast majority of coal mines in the nation’s far-east provinces, eventually heightening up demands of oils, prices of which had been hovering over a seven-year peak, adding further strains in context of a lingering supply constraint.
Nevertheless, recent advance in China’s factory gate prices had largely mirrored a havoc-scale upsurge in US inflation indicators with US producer price index jumping as much as 8.7 per cent over past twelve months through October.
China’s factory inflation jumps to 26-year peak in October
According to China’s National Bureau of Statistics (NBS) data, China’s producer price index (PPI) jumped to 13.5 per cent compared to the same time a year earlier that followed a 10.7 per cent uptick in September, insanely beating an analysts’ estimate of an increase of 12.4 per cent.
Aside from that, China’s consumer price index (CPI) climbed 1.5 per cent last month on an annualized basis compared to a 0.7 per cent rise in September, data from NBS had unveiled. Several analysts were quoted saying following China’s latest PPI and CPI data that the world’s second-largest economy might be losing momentum amid a clutch of recently imposed pandemic restrictions with authorities have been overwhelmed in wake of a withering rise in asymptomatic cases.