Higher commodity costs pushed China’s factory-gate prices to increase at their fastest rate in 13 years in August, resisting aggressive moves by Beijing to slow a rally in metals prices, reports The Wall Street Journal. Robust demand for coal, steel and other raw materials pushed China’s producer-price index 9.5% higher in August from a year earlier, the fastest increase since August 2008, when it rose 10.1%, according to China’s National Bureau of Statistics.
While prices for some global commodities, such as oil, were relatively stable last month, sharp rallies in coal and gas markets put upward pressure on China’s economy, where roughly 60% of energy consumption is derived from coal, according to economists from HSBC.
To curb the rally in commodity prices, Chinese authorities have been selling from state stockpiles while clamping down on hoarding and speculation among producers — all with limited effect on producer prices, which have climbed steadily since the spring.
You must log in to post a comment.