Energy prices push China's industrial inflation to highest level in 4 years

China's producer prices in October recorded their fastest rise in over four years, driven by increases in oil and energy prices, while consumer inflation slowed to 0.7%, reflecting continued weak domestic demand despite rising production costs.

China's producer prices in October recorded their fastest rise in over four years, driven by increases in oil and energy prices, while consumer inflation slowed, reflecting continued weak domestic demand despite rising production costs. Data released by the National Bureau of Statistics of China on Monday, November 9, showed factory-gate prices rose 5.7% year-on-year, compared to a 5% increase in September. The rise was higher than the 5.3% forecast by economists polled by Reuters, marking the highest producer price index since June 2022. In contrast, consumer price inflation slowed to 0.7% in October, down from 0.9% the previous month, slightly below the 0.8% forecast. According to Reuters, the acceleration in producer prices is mainly due to rising global oil prices, which increased production costs in energy-intensive sectors including oil and gas extraction, coal, and chemical industries.