China’s factory inflation hit 25-year high in September
BEIJING, Oct 14: China's factory inflation hit its highest level in a quarter of a century on surging commodity costs last month, with Thursday's figures fanning concerns that higher prices could filter through supply chains and into the global economy.
The reopening from lockdowns around the world has ramped up demand for energy just as stockpiles are low, made worse by China's drive to meet environmental goals by slashing emissions targets.
The producer price index (PPI), which measures the cost of goods at the factory gate, hit 10.7 percent, the National Bureau of Statistics said, marking the biggest jump in its data going back to October 1996.
The index had already hit a 13-year high in August, reflecting a surge in commodity prices -- and piling pressure on businesses. Many factories have been forced to halt operations because of power outages caused by emissions reduction targets, the surging price of coal and supply shortages.
Chinese authorities have since ordered mines to expand production, with energy firms told to ensure there are adequate fuel supplies for winter.
"In September, affected by factors such as rising prices of coal and some energy-intensive industry products, the price increase of industrial products continued to expand," NBS senior statistician Dong Lijuan said in a statement.
Dong added that among 40 industrial sectors surveyed, 36 saw price hikes -- including coal mining, which had a 74.9 percent rise. �AFP