China’s producer price inflation accelerated in August, with factory-gate prices rising 3.8% year on year as energy costs remained elevated amid supply risks linked to the conflict in the Middle East.
Data from the National Bureau of Statistics showed that the producer price index increased from 3.5% in July, exceeding the 3.6% rise forecast by economists in a Reuters poll.
Consumer price growth also strengthened. The consumer price index rose 0.8% from a year earlier, up from 0.5% in July and in line with expectations.
On a monthly basis, consumer prices increased by 0.4%, reversing a 0.1% decline in July and surpassing the 0.3% rise forecast.
The figures point to firmer price pressures across the Chinese economy, with disruptions to maritime trade and concerns over energy supplies helping to keep fuel costs high.
Separate official data showed China’s manufacturing purchasing managers’ index improved to 49.8 in August from 49.2 in July, although it remained below the 50-point mark separating expansion from contraction. The survey’s producer price sub-index rose to 50.4, its highest level since earlier in the year.
