Chinese producer prices are rising at the fastest rate in 13 years
Since the global financial crisis, the prices of commodities leaving Chinese factories have risen at the fastest rate, which has put pressure on Chinese leaders to cope with the rise in global commodities.
Data released by the National Bureau of Statistics of China on Wednesday showed that China’s producer price index rose 9% in May, the largest year-on-year increase since September 2008, which was higher than economists’ forecast.
The index has been rising sharply in recent months- Increased by 6.8% April-After being in negative territory for most of last year, the low base effect helped.
The cost of raw materials, which forms the core of China’s PPI, rose sharply last month. According to data from the National Bureau of Statistics, the price of the ferrous metal smelting industry increased by 38% year-on-year, and the price of the coal industry increased by 30%.
China is strong Industrial recovery Stimulated a rebound in commodities, but with rising costs, profits are facing the risk of being squeezed.
The Economic Planning Agency of the Chinese Government warned last month “Excessive Speculation” In the commodity market, and said it will crack down on monopolies and false information.Iron ore, reached in May Highest level Once, I was surprised by the news.
The government also emphasized the need to prevent spillovers into consumer prices, which are still low and driven by the fluctuations in pork prices over the past year.Economists say high costs will replace them Squeeze business profits, Especially those products that are sold directly to consumers.
According to the National Bureau of Statistics, consumer prices rose by 1.3% in May, the largest increase since September last year, but fell 0.2% month-on-month.