Producer prices up

Latest government data showed producer prices increased at their fastest rate in the 12 months to June. Prices of goods leaving the factory were 6.4% higher last month than a year earlier. In May, prices were 5.7% higher than in May 2003. Despite the acceleration, analysts said inflationary pressures were easing. Shanghai Securities News said raw materials had jumped 11.8% along with fuel prices, suggesting manufacturers were trying to hold prices down as best they could.