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The price of goods leaving Chinese factories has risen at the fastest pace since the global financial crisis, putting pressure on the country’s leaders with a meeting of commodities around the world.
The Chinese producer price index rose 9% in May, data from the National Bureau of Statistics showed on Wednesday, the biggest year-on-year rise since September 2008 and higher than economists forecast.
The index has risen significantly in recent months – gaining 6.8 percent in April – the low base effect helped last year after being mostly in negative territory.
The cost of raw materials, which are a key component of China’s PPI, rose sharply last month. NBS data showed that the prices of the metal smelting industry rose by 38% year-on-year, while those of coal mining rose by 30%.
China is strong industrial recovery it has sparked a meeting of commodities, but there is a risk of tightening profits as costs rise.
The Chinese government’s economic planning agency warned last month “Excessive speculation” in commodity markets and said it would deal with monopolies and false information. Iron ore in May highest level ever, he fell for the news.
The government has also stressed the need to avoid emissions from consumer prices, which remain low and have been driven by volatility in pork prices over the past year. Economists have said the costs will be high instead tighten business margins, especially those that sell directly to consumers.
Consumer prices rose 1.3% in May, the most since September last year, but fell 0.2% month-on-month, the NBS said.
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