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China's October Producer Prices Rise 5.7% Year on Year, Fastest Since June 2022
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China's producer price index accelerated to a 5.7% year-on-year rise in October, the fastest pace since June 2022 and above the 5.3% median forecast in a Bloomberg survey of economists, according to National Bureau of Statistics data released Monday. The increase, up from 5% in September, was driven by rising energy costs and marked a third consecutive month of gains. The consumer price index rose 0.7% year-on-year, down from 0.9% in September and below expectations, while core CPI fell to 0.8%, matching this year's low. Bloomberg reported that ongoing Middle East conflict and trillions of dollars in AI investment have pushed up commodity costs such as oil and metals, though Chinese firms struggle to pass these costs to consumers. Brent crude rose to a six-month high in October amid tensions over Iran. China's third-quarter economic rebound was moderate but uneven, with cautious households and weak private-sector confidence continuing to suppress domestic demand amid a prolonged housing price decline.
Source report
China's producer price index accelerated to its fastest pace since June 2022, rising for a third consecutive month as energy costs climbed. Factory-gate prices rose 5.7% year-on-year in October, up from 5% in September, according to data released Monday by the National Bureau of Statistics. The median forecast in a Bloomberg survey of economists was 5.3%.
The consumer price index rose 0.7% year-on-year in October, down from 0.9% in September and falling more than expected. Core CPI — which excludes volatile food and energy prices — dropped to 0.8%, matching this year's low.
Persistent conflict in the Middle East, combined with trillions of dollars in artificial intelligence investment, has pushed up commodity costs including oil and metals, even as Chinese companies struggle to pass these costs on to consumers. Global benchmark Brent crude rose to a six-month high in October as diplomatic efforts failed to ease tensions over Iran, despite some recovery in oil flows through the Strait of Hormuz, the world's most important energy passage. Meanwhile, global data center construction is driving demand for AI-related products and some raw materials.
Although China's economy rebounded modestly in the third quarter, bringing growth back within the government's target range, the recovery remains uneven. Cautious households and weak private-sector confidence continue to weigh on domestic demand amid a prolonged decline in housing prices.
Source: Bloomberg
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China producer inflation hits 5.7% in October as consumer price growth cools