Led by surging commodity costs, China’s factory gate prices increased at their quickest annual pace in over 12 years in May, reported Reuters. The rise highlights global inflation pressures amid policymaker’s attempts to revitalize growth after the Covid-19 pandemic.
Investors are becoming worried that stimulus measures, driven by the pandemic, could speed up global inflation and force central banks to tighten policy, potentially curbing recovery.
According to Reuters, the National Bureau of Statistics (NBS) said in a statement that, China’s producer price index (PPI) increased 9.0%, as prices bounced back from last year’s pandemic lows. Analysts in a Reuters poll had expected the PPI to rise 8.5% after a 6.8% increase in April.
The PPI rise—the fastest monthly gain since September 2008—was driven by significant price increases in crude oil, iron ore and non-ferrous metals, the NBS said.