China’s annual factory inflation rose faster than anticipated in September, driven by rising raw material prices, increasing pressure on businesses already struggling with energy curbs and supply constraints.
- The producer price index (PPI) increased 10.7% from last year in September, its fastest rate since the records started in 1996. That compared with expansion of the 10.5% forecast in a Reuters poll.
- The NBS figures also revealed that China’s consumer price index (CPI) increased 0.7% YoY in September compared to an expected 0.9% increase in the Reuters poll and 0.8% rise in August.
- A worsening power shortage in China, triggered by the economy’s transition to clean energy and high commodity prices, has stopped production at many factories, including suppliers of Apple.
- The power crunch also affected output in cement, steel, and aluminum industries, as utility companies have struggled to keep up with growing demand.
Beijing has implemented various measures to curb record-high coal prices and easing the nation’s power shortage, urging coal miners to bolster output and manage electricity demand at industrial plants.
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Source: CNBC
