China’s factory gate prices rose at the fastest rate in three and a half years during April, official data showed on Tuesday, reported the South China Morning Post.
The producer price index (PPI), a gauge of industrial profitability, rose 6.8% from a year earlier, the National Bureau of Statistics said in a statement, compared with a 6.5% rise tipped by a Reuters poll of analysts and a 4.4% rise in March.
“Producer price inflation was the strongest since October 2017 last month, as upstream price pressures remained significant due to supply constraints. This is feeding through to a rebound in consumer price inflation, though with the latter still relatively subdued and upstream price pressures likely to be mostly transient, we still doubt that inflation is about to become a key driver of [People’s Bank of China] policy,” Julian Evans-Pritchard, senior China economist at Capital Economics, said in a statement.
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